Petrobras – Conclusion of the US $ 3 billion offering in Global Notes

Rio de Janeiro, March 19, 2019 – Petróleo Brasileiro S.A. – Petrobras announces that today it concluded the offering of securities in the international capital market (Global Notes) in the amount of US$ 3 billion, with US$ 750 million from the reopening of the 2029 notes and US$ 2,25 billion from the issuance of the 2049 new notes, by means of its wholly-owned subsidiary Petrobras Global Finance B.V. (“PGF”). Pricing of the notes occurred on March 12, 2019, as disclosed to the market.

The terms are as follows:

 

2029 Global Notes

2049 Global Notes

Amount

US$ 750 million

US$ 2.25 billion

Coupon

5.750%

6.90%

Issue Price

98.515%

100%

Yield to Investors

5.950%

6.90%

Maturity

02/01/2029

03/19/2049

Interest Payment Dates

February 1  and August 1of each year

March 19 and September 19

Ratings

Ba2 (Moody’s) / BB- (S&P) / BB- (Fitch)

 

The issuance was three times oversubscribed, with 467 orders from 305 investors from the United States, Europe and Latin America, which allowed the 30-year security to be priced at the lowest yield for this tenor since 2013.

PGF will use the net proceeds from the sale of the notes to fund the tender offers, announced on 03/12/2019.

The transaction is in line with Petrobras’ Resilience Plan and the company’s liability management strategy to improve the amortization profile and cost of debt, taking into account its deleveraging target set forth in its 2019-2023 Business and Management Plan.

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