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Funding for Growth at BG Group

by Pedro Zinner, Group Treasurer & Acting Group Head of Tax, BG Group

BG Group plc has experienced a remarkable transformation since privatisation in 1986, and its demerger from British Gas plc in 1997. The company has now developed into a high growth global E&P and LNG business with a market capitalisation of around $60bn. This was achieved by generating consistently strong cash revenues as a result of its ambitious and successful growth strategy. Over the past three years BG Group has entered a major investment phase and this resulted in substantial changes to the balance sheet: for example, as the company noted in its first quarter results last May, it now has a net debt position of $10.6bn and $4.2bn in surplus cash. Consequently, the company had to devise and implement changes to its funding strategy, as Pedro Zinner discusses in this article.