Petrobras Borrowing $11 Billion by Selling Bonds

Brazilian energy major Petrobras (NYSE: PBR  ) is bulking up with a series of large-scale bond issues. The company said this week it aims to raise roughly $11 billion in a set of six flotations, to be issued by its subsidiary Petrobras Global Finance.

In detail, these are:

  • 2% fixed rate notes, maturity May 2016, total amount $1.25 billion, issue price 99.584%.
  • Floating rate notes (three-month USD LIBOR + 162 basis points), maturity May 2016, total amount $1.0 billion.
  • 3% fixed rate notes, maturity January 2019, total amount $2.0 billion, issue price 99.352%.
  • Floating rate notes (three-month USD LIBOR + 214 basis points), maturity January 2019, total amount $1.5 billion.
  • 4.375% fixed rate notes, maturity May 2023, total amount $3.5 billion, issue price 98.828%.
  • 5.625% fixed rate notes, maturity May 2043, total amount $1.75 billion, issue price 98.027%.

Petrobras said the proceeds will be used to fund the company's 2013-2017 business plan, and for general corporate purposes. It expects the offering to close on May 20.

The joint book-running syndicate for the issue includes Citigroup's Global Markets unit, JPMorgan Chase's J.P. Morgan Securities, and Bank of America subsidiary Merrill Lynch, Pierce, Fenner & Smith.


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