British Petroleum (BP) raises nearly $12 billion in hybrid bonds issue

BP

British Petroleum has raised USD $11.9 in a debt. In an email statement to Reuters by a spokeswoman from BP, the British-based company states that is it was been able to raise amount through hybrid bonds issued in multiple currencies. This move is to take advantage of the current low interest rate in the global financial market which was brought about by the coronavirus to strengthen the company’s’ balance sheet.

BP is supposed to benefit from this unprecedented move by issuing hybrid bonds. According to the spokeswoman, the hybrid bond places les strain on the balance sheet as the principal of this bond is not required to be paid.

The round of fundraising is immediately after BP made the decision to write off up to USD$ 17.5 billion from the value of the company’s assets. The company is forecasting that the COVID-19 crises woud mount enough pressure for energy demand to accelerate a shift from the fossil fuels.

Also the company has made statements earlier this month that it would cut off 15% of its current workforce to deal with the adverse effect the coronavirus pandemic has brought.

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