Brazil’s Petrobras hires Bank of China to organize debt issue

17 March 2014

Brazilian oil company Petrobras has hired the Bank of China to organize a bond issue worth US$8.5 billion, financial news agency Bloomberg reported.

The agency said that this would be the first debt issue by a Latin American company subscribed by a Chinese bank. According to sources from the Credit Agricole bank and Brazil’s Getúlio Vargas Foundation, the deal is expected to include a loan to the Brazilian oil company.

According to Bloomberg, neither Petrobras nor the Bank of China would comment on the deal.

Petrobras, which is the world’s most indebted oil company, with debt totalling US$113 billion, last week issued 10-year bonds worth US$2.5 billion and in January issued US$5.1 billion in Eurobonds and bonds in pounds sterling. (macauhub)