Brazil’s state-owned oil producer “Petroleo Brasileiro” is ready to return to global debt markets with a record bond sale soon, insiders said.
“Petrobras” is expected to put up to 1.5 billion dollars in the form of 10-year bonds, according to the people, who requested anonymity because the information has not yet been published. The Rio de Janeiro-based company plans to use at least part of the proceeds for liability management purposes, the people said, adding that the size and timing of the deal are still subject to change.
The last time the state-run oil producer entered the global credit markets was in June 2021, when it sold 30-year bonds to buy maturing debt. Brazil also sold 2.25 billion dollars in April, the first dollar offer since President Luiz Inacio Lula da Silva took office in January.
Investors in “Petrobras” fear that the Lula da Silva administration will take a more interventionist approach to the company after the government appointed Jean-Paul Prats as its CEO.
Petrobras has pledged to increase investment in refining and renewable energy, while continuing to expand its most profitable operations in the giant deepwater oil fields.
The largest shareholder of “Petrobras” does not see any risks of Lula da Silva’s intervention.
The oil producer posted better-than-expected profits in the first quarter, which saw total debt fall to 53 billion dollars, the lowest level since 2010.
