Industry raises $100 billion to contain virus impact

According to Bloomberg’s website, in order to help producers and suppliers cope with falling oil prices and the impact of coronavirus, the oil sector is expected to raise $100 billion in financing. Financial strengthening and spending cuts plans can help the industry cope with the commodity’s fall

. Exxon Mobil, for example, sold $18 billion in new securities in two offerings and raised $7 billion with a revolving credit line. BP and Royal Dutch Shell raised more than $15 billion in bonds and new bank financing, while Malaysia’s Petroliam Nasional sold $6 billion in bonds, which would be the largest dollar issue in Asia this year. For the big an

d giants, we see the current wave of issuance as a strengthening of liquidity in the face of huge market uncertainty,” said Simon Redmond, commodity industry leader at S&P Global Ratings. “By prefinancing future bond maturities, issuers avoid having to access markets when prices are less favorable or, at worst, not being able to access markets when needed,” he said.

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