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Petrobras to Try to Sell Up to US$1.3 Billion in Debt Securities
05/13/2015 - 09h08
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RAQUEL LANDIM
DAVID FRIEDLANDER
FROM SÃO PAULO
For the first time in 15 years, Petrobras is to sell debt securities in Brazil. The plan is to raise US$993 million to $1.3 billion (R$3-4 billion) to replenish its funds and cover its investments.
The company has been forced to change tack, as international markets are currently averse to Petrobras securities because of Operation Car Wash (Lava Jato). Petrobras usually prefers to raise funding in this manner abroad in order to pay less interest.
The target market for these debt securities are large investors, like the pension funds of state-owned assets and the main fixed income investment funds.
This week, Petrobras is completing arrangements with the banks who will coordinate the sales - Bradesco, Banco do Brasil, BTG Pactual and Votorantim.
The banks believe there could be high demand for Petrobras securities in Brazil, in spite of the crisis of confidence the company currently faces. Following the company's publication of its finances, the possibility of a default is considered unlikely.
Since ex-Banco do Brasil president Aldemir Bendine took over at Petrobras in February, the company has decided to borrow more from the market, in spite of its net debt having reached US$93.3 billion (R$282 billion).
In its last financial statement, the company said that it aims to raise US$13 billion from the US$19 billion authorized by the administrative council.
Read the article in the original language
Sergio Moraes - 16.dez.2014/Reuters | ||
For the first time in 15 years, Petrobras is to sell debt securities in Brazil |