Australian oil and gas company Woodside is looking to issue an “unsecured 10-year and/or 30-year bond offering,” according to LSEG, which would provide the company with a new source of finance for its gas expansion plans.
While the value of the bond issuance has not yet been disclosed, four major global banks are named as ‘bookrunners’ for Woodside’s bond offering: Barclays, JP Morgan, Mizuho and UBS. This means these banks are arranging sales meetings for potential investors. Bonds are a type of finance that companies or governments can ‘issue’ to investors, which raises money for the issuer, while the arranging banks typically play a facilitating role.
This news comes only four months after Woodside suffered a world record-breaking majority vote against its climate plan. Despite this clear signal that shareholders aren’t happy with its wholly inadequate climate strategy, Woodside has since purchased a yet-to-be developed liquefied natural gas (LNG) project in the United States called Driftwood, which could double the company’s already massive (and increasing) emissions.
As an undiversified oil and gas producer actively pursuing several new projects, this new bond issuance would provide the company with another source of finance to continue with its climate-wrecking gas expansion plans. The company already plans on spending at least $18 billion over the next five years on developing oil and gas projects, which could increase by a further US$15.8 billion if Woodside decides to go ahead with the Driftwood LNG facility.
Woodside has repeatedly demonstrated it is unwilling or unable to align its business plans with global climate goals and deserves no further financial support from investors while it still has oil and gas expansion plans on its books.
With Australia’s big four banks slowly but surely turning off the finance tap for companies like Woodside, these climate wreckers are increasingly looking for other ways to fund their dangerous expansion plans. The bond market is one such avenue that coal, oil and gas companies are increasingly exploring.
With a potential 30-year bond maturity, Woodside is looking for long-term financial support for its destructive expansion plans, some of which could run until the 2070s. The science is clear that no new oil or gas projects like those Woodside is pursuing can go ahead if we are to have a shot at a stable climate future.
Barclays, JP Morgan, Mizuho and UBS must commit to not arranging finance for Woodside.