Petrobras Closes USD 7 Billion Issuance of Global Notes (Brazil)

Petrobras said that it has closed the issuance of Global Notes in the international capital markets in the amount of US$ 7 billion.

The Notes were issued by Petrobras’ wholly owned subsidiary, Petrobras International Finance Company (PifCo). The transaction – the issuance of notes due 2015 and 2017 and the reopening of the bonds due 2021 and 2041 – was priced on February 1, 2012 .

The transaction was executed in one day, with a demand of approximately US$ 25 billion as a result of more than 1,600 orders coming from more than 700 investors. This issue sets the following records:

Largest ever Brazilian international bond offering

Largest emerging market corporate bond offering in recent years

Lowest yield for a Brazilian company (3 and 5 year terms)

Lowest yield for the 10 year bond issued by Petrobras

Lowest yield for a 30 year for a Brazilian Company

The final allocation was more concentrated in the United States (58.4%), Europe (28.1%) and Asia, mostly dedicated to the high grade market.

“The success of the transaction indicates investor confidence in the fundamentals of the Company, its growth strategy and commitment to maintaining the investment grade, as indicated by monitoring debt ratio targets and presenting significant cash generation levels. Additionally, the transaction is aligned with the fund-raising strategy announced by the Company to access the market at specific moments and for volumes required for the financing of investments as defined in the Business Plan,” Petrobras said in a statement.

[mappress]

LNG World News Staff, February 7, 2012