Christopher Kuplent's questions to BP PLC (BP) leadership • Q4 2024
Question
Christopher Kuplent of BofA Securities asked about the value proposition of issuing more hybrid bonds at a relatively high cost to lower net debt.
Answer
CFO Katherine Thomson explained the issuance was a 'value play' to take advantage of an all-time low in senior-sub spreads, allowing them to pre-fund upcoming maturities in a strong market. She reiterated that hybrids are an important, tax-deductible part of the capital structure.