Santos Capital Raising

Petroleum and Gas company, Santos (ASX:STO) seeking a capital raising, has raised an additional €300 million in its European hybrid issue. The company’s upsized issue totals €1 billion as Santos previously raised €700 million last month from a European hybrid issue through UBS and Deutsche Bank.

The capital raising funds are to help fund and potentially reduce the size of a potential share issue by Santos to pay for its 45 percent share of the Gladstone LNG project (GLNG) which it is partners with Petronas and French company, Total. Total recently bought a 15 per cent stake in the GLNG project for $650 million.

Korea Gas (Kogas) revealed this week it is seeking to acquire a 15 per cent stake in GLNG, more than the expected 10 percent. The coal seam gas project had also secured more than $100 billion of contracts, making it one of the largest export deals in Australia's history. Santos has yet to publish an estimate of the cost of building GLNG but analysts forecast it will cost about $16 billion.