DCM - Energy companies - Bond Issuances
Hi all, please could you help with this.
Given that energy companies have been significantly impacted (low oil prices, decreased demand), how would DCM teams advise their client companies on issuances. In terms of which currency to issue in, maturity of bond, type of bond, timing of issuance etc.
Would really appreciate your help.
Thank you.
There are still a lot of variables that you are missing. One major factor for your ability to get capital in the credit market is you are a up mid or down stream provider. An upstream service provider will probably not be able to get a whole lot of credit right now ( at leaser not at a reasonable rate) whereas a Midstream company or downstream with a strong balance sheer can probably still borrow at a credit worthy rate.
Additionally the factors mention above are going to be very client dependent. However the over market is see it harder to place long term debt due to the volatility in the market, but the credit markets are starting to see some return to normalcy. I would expect big player to look for longer term financing in the next year or two to lock in the lower rates when volatility continues to decrease.
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