Danish shipping and oil group A.P. Moller-Maersk sold 500 million euros ($698.5 million) of new seven-year bonds in an oversubscribed offering that was part of a policy to diversify its funding.
The 2017 bond, only Maersk's third corporate bond issue -- attracted orders of 1.6 billion euros, Danske Bank said.
It was priced with a coupon of 4.375 percent and reoffer of 99.646, giving a yield of 4.435 percent, an official at Danske Bank, which was one of the bookrunners, said.
The other bookrunners were Barclays, BNP Paribas, HSBC, Royal Bank of Scotland.
The group has no immediate plans to obtain a rating as a debt issuer, Maersk's head of finance Jan Kjaervik told Reuters.
It would seek to build up a portfolio of bonds with various maturities, and it would make sense to have maturities of three, five and seven years, Kjaervik added.
A.P. Moller-Maersk, which owns the world's biggest container shipping company Maersk Line, entered the corporate bond market for the first time last year with a 750 million euro issue, followed by a 4 billion Norwegian crown ($689.2 million) issue.
The group has repeatedly said it aims to diversify its sources of funding and bonds would gradually play a larger role, replacing conventional bank debt.
A.P. Moller-Maersk said in its first-half report last week that its net interest-bearing debt fell by $4.4 billion to $13.7 billion in the nine months to end-September.
The 2017 bond, only Maersk's third corporate bond issue -- attracted orders of 1.6 billion euros, Danske Bank said.
It was priced with a coupon of 4.375 percent and reoffer of 99.646, giving a yield of 4.435 percent, an official at Danske Bank, which was one of the bookrunners, said.
The other bookrunners were Barclays, BNP Paribas, HSBC, Royal Bank of Scotland.
The group has no immediate plans to obtain a rating as a debt issuer, Maersk's head of finance Jan Kjaervik told Reuters.
It would seek to build up a portfolio of bonds with various maturities, and it would make sense to have maturities of three, five and seven years, Kjaervik added.
A.P. Moller-Maersk, which owns the world's biggest container shipping company Maersk Line, entered the corporate bond market for the first time last year with a 750 million euro issue, followed by a 4 billion Norwegian crown ($689.2 million) issue.
The group has repeatedly said it aims to diversify its sources of funding and bonds would gradually play a larger role, replacing conventional bank debt.
A.P. Moller-Maersk said in its first-half report last week that its net interest-bearing debt fell by $4.4 billion to $13.7 billion in the nine months to end-September.