Petrobras completes US$3 billion bond sale

Rio de Janeiro, July 13, 2016 – Petóleo Brasileiro S.A (Petrobras) announces that today, through subsidiary Petrobras Global Finance B.V. (PGF), it has completed the US$3 billion bond sale on the international capital markets (called global notes). This sale constituted a reissue of securities maturing in 2021 and 2026, originally issued in May 2016. Of the additional volume issued, US$1.75 billion will mature in 5 years and US$1.25 billion will mature in 10 years. Key information about the bond sale is provided below:

 

 

Bonds maturing in 2021

Bonds maturing in 2026

Total US$1.75 billion US$1.25 billion
Coupon 8.375% 8.750%
Issue price 101.971% 99.981%
Yield for investors 7.875% 8.750%
Maturity date May 23, 2021 May 23, 2026
First interest payment

November 23, 2016

Interest payment dates

May 23 and November 23 of each year

Ratings

B3 (Moody’s) / B+ (S&P) / BB (Fitch)

Joint bookrunners BB Securities Ltd, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Santander Investment Securities Inc.

 
Demand was approximately 2.4 times the amount on offer for bonds maturing in 2021, and 2.3 times for bonds maturing in 2026. In all, around 350 investors in the United States, Europe, Asia and Latin America took part in the operation.

Petrobras plans to use the net proceeds of the issue to launch a tender offer to buy back securities, as previously announced, and for corporate purposes in general.

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