August 14, 2019
Petróleo Brasileiro S.A. – Petrobras reports that today it fully prepaid a financing contract with China Development Bank (CBD) due in 2024, totaling US$ 3 billion.
The company also notified CBD on the advanced payment of another loan, in the amount of US$ 5 billion and whose maturity would be in 2027, to be made on December 16, 2019 as allowed in the contract. This pre-payment will result in the termination of the preferential supply obligation of 100 thousand barrels of oil equivalent per day to Chinese companies under market conditions and for the same period of the loan.
These operations are in line with the company’s liability management strategy, which aims at improving the amortization profile and the cost of debt taking into account the deleveraging target set forth in its 2019-2023 Business and Management Plan.