BG Group adds $500 million to hybrid bond issuance

20 June 2012

BG Group adds US$500 million to hybrid bond issuance

BG Group today announced it has successfully added a US dollar denominated hybrid bond to the long-dated sterling and euro denominated hybrid bonds issued earlier this week. The size of the new issue is US$500 million, taking the total raised across all three currencies to US$2.07 billion.

The new bonds, which have a coupon of 6.5%, have the same principal terms and conditions as the sterling and euro issues and mature on the same date in 2072. Settlement will occur 27 June 2012, subject to standard settlement conditions.

The hybrid bonds are long-dated, subordinated securities which are treated partially as equity by credit rating agencies, further strengthening and diversifying BG Group's balance sheet. BG Group has a right to repay the bonds on certain dates before maturity, the first occurring in November 2017.

The hybrid bond issues are another step in the execution of BG Group's funding plan to support the Group's global investment programme, including in projects in the Santos Basin, offshore Brazil and onshore in Queensland, Australia.

BG Group Executive Director & Chief Financial Officer Fabio Barbosa said: "Support for our hybrid bond programme has been very pleasing and represents a clear endorsement of our global investment strategy. The US dollar offer, like the sterling and euro issues earlier this week, was oversubscribed. We were particularly pleased by the level of interest from investors in Asia, which provides further geographic diversity to our sources of funding as we pursue the significant growth opportunities in our portfolio".

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Notes to Editors:

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 20 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG) and transmission and distribution business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. For further information visit: www.bg-group.com

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Mark Todd: +44 (0) 118 929 3110 [email protected]

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There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from these forward-looking statements, refer toBG Group's Annual Report and Accounts for the year ended 31 December 2011. BG Group does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.