BP plans to raise £400million in new debt financing through its subsidiary BP Capital Markets.
The structure includes the issue of guaranteed non-dilutive cash-settled convertible bonds with the purchase of cash-settled call options to hedge the economic exposure to the potential exercise of the conversion rights under the bonds.
BP is expected to reveal more details regarding the debt financing later today.
The bonds, which will have a seven year maturity, will be issued by BP Capital and “unconditionally and irrevocably guaranteed by BP”.
A company statement said: “BP Capital intends to use the net proceeds of the offering of the Bonds for general corporate purposes and for the purchase of the cash-settled call options.”