Royal Dutch Shell PLC is selling billion in a two-part deal Thursday.
The three- and 10-year bonds are being offered at percentage point over
comparable Treasurys, respectively. At current rates,
A term sheet doesn't indicate how Shell, one of the world's largest
oil-and-gas companies by market capitalization, will use the proceeds. But
Shell says in the bond prospectus that it is expanding its gas-based business
through investment in liquefied-natural-gas and gas-to-liquids projects. In
2011, for instance, it made investments with a partner in Qatar.
The bonds are being sold by a financing arm, Shell International Finance BV,
and are "unconditionally guaranteed" by the parent company. Shell last tapped
the market in August, when it sold $2.5 billion worth.
The bonds are expected to be rated Aa1 by Moody's Investors Service and AA
by Standard & Poor's Ratings Services.
Barclays and Goldman Sachs Group are lead underwriters.

