Malaysian oil producer Petronas last week issued $1 billion worth of straight bonds, putting to rest persistent rumors that it would do a securitization backed by oil receivables.
Petronas is one of the few Malaysian entities able to borrow regularly in international markets. Its financial strength and strong government backing have made it an ideal candidate for a future flow transaction. Over the past year, many hopeful ABS bankers in Asia had approached the firm about doing an export receivables-backed deal, leading many to believe that a future flow deal was in the works.
The five and 10-year bond issue is lead managed by Credit Suisse First Boston. It has been rated triple-B minus by both Standard & Poor's and Duff & Phelps.