Citigroup (NYSE:C), BNP, Barclays (NYSE:BCS), RBS (NYSE:RBS) Leading BP (NYSE:BP) $3 Billion Bond Issuance

BP Capital Markets PLC, the funding unit of BP Plc (NYSE:BP), is close to issuing about $3 billion in bonds, led by Citigroup (NYSE:C), BNP Paribas, Barclays Capital (NYSE:BCS), Royal Bank of Scotland (NYSE:RBS) and Mizuho Securities USA Inc.

The bonds will be 5- and 10-year bonds sold in U.S. dollars.

Pricing of the bonds will be somewhere in the low to mid 200 basis points range over Treasuries, with tranches split close to equal.

BP PLC, the parent company, will be guaranteeing the bonds, which are projected to be rated A2 by Moody's Investors Service (NYSE:MC) and A by Standard & Poor's.

In a filing with the Securities and Exchange Commission BP said they will use the capital to pay for existing debt and other general corporate purposes.

A spokesman for BP said the bond issuance isn't specifically related to the BP oil spill and is part of normal financial management of the company.

Lukoil Receives Financing to Acquire Conoco (NYSE:COP) Shares in Company

The recent announcement that Conoco (NYSE:COP) would be selling 7.6 percent stake in Lukoil back to the company is a step closer to reality, as Lukoil secured $1.5 billion in financing from six banks.

Lukoil agreed with ConocoPhillips to buyback the 7.6 percent stake they held for $3.4 billion, and included in the terms of the deal are a 60-day option to acquire more stock in the company held by Conoco.

Unnamed people close to the deal said the banks involved in the financing are Citigroup Inc. (NYSE:C), Bank of Tokyo-Mitsubishi UFJ Ltd., ING Groep NV, Natixis, Royal Bank of Scotland Group Plc and WestLB AG.

The known terms of the loan are its a one-year deal