Royal Dutch Shellthe Anglo-Dutch oil company issues a dollar-denominated seven-year zero-coupon Eurobond in the amount of US$1
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Royal Dutch Shell—the Anglo-Dutch oil company—
issues a dollar-denominated seven-year zero-coupon Eurobond in the amount of US$1 billion at an annual yield of 6. 5 percent.
a. Where would the funds actually be raised? Who would the investors be?
Would investors in such Eurobonds be primarily domiciled in the euro-zone?
b. How much capital would Royal Dutch raise with this issue?
c. If underwriting fees amount to 150 basis points of the bond issue’s face value, how much capital would Royal Dutch receive?
d. What is the all-in cost of debt faced by Royal Dutch Shell?
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Related Book For
International Corporate Finance Value Creation With Currency Derivatives In Global Capital Markets
ISBN: 9781119550464
2nd Edition
Authors: Laurent L. Jacque
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