Petrobras issues US$ 1.25 billion in 10-year bonds – 06/26/2023 – Market

Petrobras launched this Monday (26) the offer of an issue of debt securities abroad of US$ 1.25 billion (5.9 billion) with a tenor of 10 years, according to information from the IFR (International Financing Review), by Refinitiv.

The pricing of the interest rate to be paid by the company in the operation is expected for this Monday, while the conclusion of the offer should take place on July 3, according to information from the IFR.

In a statement to the market published this Monday, Petrobras had informed that its wholly-owned subsidiary, PGF (Petrobras Global Finance BV), planned to offer a new series of bonds on the international market in a new issue, subject to market conditions. The bonds will be issued with a full and unconditional guarantee from Petrobras, according to the document.

“The PGF intends to use the net proceeds from the sale of the securities for general corporate purposes, which may include the payment of existing debts”, says the statement, which also informs that the operation will be carried out by the banks BTG Pactual, Citigroup, Goldman Sachs, Itau BBA USA Securities, MUFG Securities Americas, Santander US Capital Markets LLC, Scotia Capital (USA) and UBS Securities.

The company said that the choice of these institutions took into account criteria of commitment to sustainability.

The Fitch Ratings agency assigned a “BB-” grade to the Petrobras issue, the same risk rating as the company itself. According to the agency, the rating is linked to Brazil’s “BB-” grade, due to the company’s strategic importance for the country and the government’s control over the company.

The company’s common shares (with voting rights) closed up 2.04%, while preferred shares rose 2.25%, in the opposite direction to the Ibovespa, which fell 0.62%.

With Reuters