Santos Ltd
(ASX:STO) says it has increased its hybrid funding to 1 billion euro, around $1.4 billion Australian dollars, to fund its share of the company’s Gladstone Liquefied Natural Gas project.
Following on from a settled debt issue of 700 million in September the oil and gas producer has priced an additional 300 million euro follow-on hybrid issue.
The follow-on hybrid is expected to settle near the end of October and will receive 100% equity credit from Standard & Poor’s.
Chief Financial Officer Peter Wasow says the follow-on hybrid issue received significant demand from investors and shows Santos’ commitment to maintain an efficient capital structure.
Mr Wasow adds that as it finalises funding for its Gladstone LNG project, it was a logical decision to return to the Euro hybrid market and further reducing the amount of potential equity needed to maintain its credit rating.
In the first six months of 2010, Santos earned $198 million.
