Danish shipping and oil group A.P. Moller-Maersk (MAERSKb.CO) has hired five banks to explore a potential bond sale which sources said was likely to raise 500 million euros ($699 million) to 1 billion, Reuters reports.The banks -- Barclays Capital, ING, JPMorgan Chase, Mitsubishi and Nordea -- will start a roadshow on Tuesday, Maersk spokesman Michael Storgaard said on Thursday.
"We will investigate our financing options now, but we have not taken any decision regarding a potential bond issue," Storgaard said.
"It is part of our practice and we do it from time to time." He declined to say what size or maturity Maersk was considering.
A.P. Moller-Maersk, which owns the world's biggest container shipping company Maersk Line, debuted in the corporate bond market in 2009 with a 750 million euro issue, followed by a 4 billion Norwegian crowns ($689 million) issue.
Last November, it raised 500 million euros in a new seven-year bond, its third corporate issue.
The group has repeatedly said it aimed to diversify its sources of funding and bonds would gradually play a larger role, replacing conventional bank debt.
"I think they will raise 500 million to 1 billion euros. That way they have additional room in the current programme to raise a similar amount again later," Nykredit Markets analyst Ricky Rasmussen said. "I think demand will be very good. It usually is."
The group was likely to issue a 10-year bond, as its two latest issues had been five-year and seven-year bonds, a source close to the matter told Reuters.
Shares in A.P. Moller-Maersk were down 1.0 percent at 1243 GMT, slightly underperforming a 0.9 percent fall in the Copenhagen bourse bluechip index .OMXC20.
"We will investigate our financing options now, but we have not taken any decision regarding a potential bond issue," Storgaard said.
"It is part of our practice and we do it from time to time." He declined to say what size or maturity Maersk was considering.
A.P. Moller-Maersk, which owns the world's biggest container shipping company Maersk Line, debuted in the corporate bond market in 2009 with a 750 million euro issue, followed by a 4 billion Norwegian crowns ($689 million) issue.
Last November, it raised 500 million euros in a new seven-year bond, its third corporate issue.
The group has repeatedly said it aimed to diversify its sources of funding and bonds would gradually play a larger role, replacing conventional bank debt.
"I think they will raise 500 million to 1 billion euros. That way they have additional room in the current programme to raise a similar amount again later," Nykredit Markets analyst Ricky Rasmussen said. "I think demand will be very good. It usually is."
The group was likely to issue a 10-year bond, as its two latest issues had been five-year and seven-year bonds, a source close to the matter told Reuters.
Shares in A.P. Moller-Maersk were down 1.0 percent at 1243 GMT, slightly underperforming a 0.9 percent fall in the Copenhagen bourse bluechip index .OMXC20.