Petrobras Issues US$ 6 Billion in Global Notes (Brazil)

Petróleo Brasileiro S.A. – Petrobras announces that it closed today a US$ 6 billion issuance of 5, 10 and 30 year notes in the international capital markets.

The notes were issued by Petrobras’ wholly-owned subsidiary Petrobras International Finance Company and constitute general senior unsecured and unsubordinated obligations of PifCo that are unconditionally and irrevocably guaranteed by Petrobras.

Pricing occurred on January 20, 2011 and the terms of the notes are as follows:

The transaction was the largest-ever corporate bond offering by a Brazilian company in the international capital markets, and the book was oversubscribed 2.5 times with more than 463 investors from the United States, Europe, Asia and Latin America participating, most of them dedicated to the high grade market.

Petrobras will use the proceeds of this multi-tranche offering to finance Petrobras’ planned capital expenditure under its 2010-2014 Business Plan while maintaining an adequate capital structure and staying within Petrobras’ targeted financial leverage ratios in accordance with its 2010-2014 Business Plan.

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Source: Petrobras, January 28, 2011;

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