Latest News

Petrobras taps the global debt market for 2 billion dollars after Brazil's issuance

Petrobras, the state-run Brazilian oil company, has priced a $2 billion global notes offering through its wholly-owned subsidiary Petrobras Global Finance B.V. in two tranches. This was disclosed in a filing of securities on Wednesday.

The first tranche is $1 billion of global notes with a 5.125% interest rate due 2030. They are priced at 99.024% and yield 5.350%. The interest payments will begin in March 2026 and continue every 10th of March until September 2020.

The second tranche includes a $1 billion of 6.250% global bonds due in 2036 priced at 97.784%, yielding 6.550%. Interest payments will begin in January 2026 on the 10th January and 10th July.

Brazil's Treasury made its third sale of foreign debt this year on Tuesday. The Treasury said the transaction would open the market and serve as a benchmark for corporate issues.

Petrobras said that the offering was "subject to conditions of the market and others," in a filing with securities. The company added that net proceeds will be used for general corporate purposes.

Petrobras Global Finance announced that BBVA and Citigroup as well as Itau BBA Santander, Deutsche Bank, Santander, UBS, and Citigroup will act jointly as bookrunners.

IFR, a fixed-income news service, reported earlier that day that Petrobras would issue two separate unsecured notes. One note will be for five years and the other will be for a 10-year term. (Reporting and editing by Nick Zieminski, Isabel Teles, and Nia William)

(source: Reuters)