Total has synthetically converted a recent fixed rate GBP250 million (USD460 million) bond to a floating rate dollar liability. Charles Paris De Bollardière, group treasurer, said, it keep all its debt in either floating dollars or euros.
Paris De Bollardière declined to comment on the rates exchanged in the swap, but said, "If the levels in a market are good we will issue a bond and enter a swap. We have no minimum issuance level but we have a policy to maintain a certain level of liquidity." JP Morgan and UBS are the swap counterparties. The maturity is 2010 and the coupon is 4.875%.
"Our counterparty risk policy is very clear" said Paris De Bollardière. "We need to have counterparties rated AAA3 by Moody's Investors Service or AA minus by Standard & Poor's. For example, in a recent Swiss franc bond issue managed by Credit Suisse First Boston and BNP Paribas, we chose BNP as the counterparty on the swap for their credit rating."
