Petrobras details proposed R$3 billion three-part debenture offering

By Sarah Lizee

Olympia, Wash., Jan. 9 – Brazil’s Petroleo Brasileiro SA (Petrobras) detailed its proposed offering of up to R$3 billion nonconvertible unsecured debentures to be issued in three series with maturities of seven and 10 years in a 6-K filed with the Securities and Exchange Commission on Tuesday.

The seven-year first series and 10-year second series will each bear interest at a fixed rate that will be determined through a book-building process.

The seven-year third series will bear interest at a rate equal to a percentage of the DI rate.

Proceeds will be used to repay debt and for the exploration of oilfields.

Banco Itau BBA SA, BB-Banco de Investimento SA, Banco Bradesco BBI SA, Banco Citibank SA and Banco Santander (Brasil) SA are coordinating the offering.

As previously reported, the issue may be upsized up to 20%, or up to R$600 million.

Petrobras is a Rio de Janeiro-based oil and gas company.

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