August 12, 2019
Petróleo Brasileiro S.A. – Petrobras reports that today it has prepaid the Term of Financial Commitment (TFC) FAT/FC (“Term”), in the amount of R$ 2.7 billion, whose maturity would be in 2028. The Term resulted from the Reciprocal Obligations Agreement (AOR) signed with Petros and various trade unions in 2006 aiming at a solution for the rebalancing of Petros plans, adjustment of their regulations, and closing of existing litigations. The Term was intended to cover deficits generated by the introduction of the Initial Readjustment Factor (FAT) and of the Monetary Adjustment Factor (FC) in 1984, a hyperinflationary period, under the regulation to protect the benefits of those assisted by Petros under Petros Renegotiated (PPSP-R) and Non-Renegotiated (PPSP-NR) plans. The pre-payment contributes to improving the liquidity of the plans and is in line with the company’s liability management strategy, reducing interest expenses.