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.
Fool contributor Eric Volkman has no position in Petrobras. The Motley Fool recommends Petrobras. The Motley Fool owns shares of Bank of America, Citigroup, and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.