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OMV raises 1.75 bln euros with bond issue to help fund Borealis deal

VIENNA (Reuters) - Austrian oil company OMV is issuing 1.75 billion euros ($1.9 billion) in bonds, mainly to help to fund its $4.7 billion purchase of a stake in plastics maker Borealis, it said on Friday.

OMV struck a deal last month with Abu Dhabi state investor Mubadala to buy 39% of the polymer producer, increasing its stake to 75%.

The Austrian company has previously said it plans to sell $2.3 billion of assets to help to fund the acquisition.

“The proceeds from the issue of the notes shall be used in particular for the financing of the acquisition of an additional 39% stake in Borealis AG,” OMV said.

The issue of senior bonds announced on Friday involves three tranches, with 500 million euros of four-year bonds with a coupon of 1.5%, the same volume of eight-year bonds with a 2% coupon and 750 million euros of 12-year paper with a coupon of 2.375%.

Reporting by Francois Murphy; Editing by David Goodman

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