Sunday, October 22, 2017

Petrobras looks to raise $40bn

November 10, 2010 by  
Filed under Oil News

Petrobras plans to raise $40 billion in the next five years through bank loans and bond sales.

Petrobras also needs to refinance $38 billion in debt that is due through 2014, company boss Jose Sergio Gabrielli said today at an event in Sao Paulo.

Petrobras expects oil prices to average $65 per barrel to $85 per barrel through 2015, helping to finance spending, Gabrielli said.

“They’ve been quite successful at getting loans from official agencies and China,” said Eduardo Suarez, an emerging- markets strategist at RBC Capital Markets in Toronto, Bloomberg reported.

Petrobras may sell bonds “soon” to take advantage of attractive interest rates for corporate debt, he said, adding he expects $5 billion per year in bond sales.

Petrobras plans to invest $224 billion for the five years through 2014 to boost oil output and expand refining.

The company will revise its investment plan next year to include the development of new oil reserves it bought from the government as part of a $70 billion share sale, the largest in history.

The company will probably increase its spending plan after it bought 5 billion barrels of undeveloped oil reserves from the government as part of the September share sale, said Suarez.

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