Financial

Petrobras Issues US$ 4 billion in Global Notes

Rio de Janeiro, May 22, 2017 – Petróleo Brasileiro S.A. – Petrobras announces that it has closed today a US$ 4 billion issuance of 2022, 2027 and 2044 notes in the international capital markets. The notes were reopened by Petrobras’ wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”) and constitute general senior unsecured and unsubordinated obligations of PGF that are unconditionally and irrevocably guaranteed by Petrobras. Pricing occurred on May 15, 2017 and the terms of the notes are as follows:

 

2022 Notes

2027 Notes

2044 Notes

Amount

US$ 1 billion

US$ 2 billion

US$ 1 billion

Coupon

6.125%

7.375%

7.250%

Issue Price

105.140%

109.954%

102.993%

Yield to Investors

4.875%

6.00%

7.00%

Maturity

01/17/2022

01/17/2027

03/17/2044

1st Interest Payment Date

07/17/2017

09/17/2017

Interest Payment Dates

January 17 and July 17 of each year

March 17 and September 17 of each year

Ratings

B1 (Moody’s) /  BB-  (S&P) / BB (Fitch)

Joint Bookrunners

BB Securities Limited, Banco Bradesco BBI S.A., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Itau BBA USA Securities, Inc. e Morgan Stanley & Co. LLC.

 

The transaction was executed in one day, with a demand of approximately US$ 20 billion as a result of more than 900 orders from almost 400 investors. This transaction registered the lowest average interest rate for Petrobras since 2013, with the majority of investors coming from North America (77%) and Europe (19%).

As previously announced, PGF intends to use the net proceeds from the sale of the Notes towards the redemption price of its existing 2.750% Global Notes due January 2018, 5.875% Global Notes due March 2018 and 4.875% Global Notes due March 2018, to repay other existing indebtedness and the remainder, if any, for general corporate purposes. PGF intends to issue a notice of redemption and redeem the aggregate principal amount of these notes no less than 30 days and not more than 60 days thereafter.

Categories: Financial, Petrobras

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