Petrobras raises $8.5 billion for offshore exploration

Mar 11, 2014 12:00 AM

Brazilian energy company Petroleo Brasileiro (Petrobras) announced it has sold overseas bonds, raising $8.5 billion for its investment plan.

The company sold six sets of dollar-denominated bonds, which include fixed-rate bonds and floating-rate debt, to fund $221 billion spending plan for the next five years.

In May, the company made $11 billion from a six-part sale in May 2013..

Petrobras aims to finance development of some of the largest offshore oil discoveries in the Americas with the money.

"Everyone knows they need the money, and it makes sense for them to raise it now," Carlos Gribel, vice president for emerging markets at INTL FCStone Securities Inc., said..

According to Klaus Spielkamp, a fixed-income trader at Bulltick Securities LLC, Petrobras is providing potential investors with $2.5 billion of 10-year fixed-rate notes that are expected to yield 350 basis points above U.S. Treasuries.

"A year from now, whoever buys it for the long term knows they will face competition again as new bonds come with a higher premium," said Spielkamp.

Market Research

The International Affairs Institute (IAI) and OCP Policy Center recently launched a new book: The Future of Natural Gas. Markets and Geopolitics.

Cover_242-width

The book is an in-depth analysis of some of the fastest moving gas markets, attempting to define the trends of a resource that will have a decisive role in shaping the global economy and modelling the geopolitical dynamics in the next decades.

Some of the top scholars in the energy sector have contributed to this volume such as Gonzalo Escribano, Director Energy and Climate Change Programme, Elcano Royal Institute, Madrid, Coby van der Linde, Director Clingendael International Energy Programme, The Hague and Houda Ben Jannet Allal, General Director Observatoire Méditerranéen de l’Energie (OME), Paris.

For only €32.50 you have your own copy of The Future of Natural Gas. Markets and Geopolitics. Click here to order now!


 

Upcoming Conferences
« April 2019 »
April
MoTuWeThFrSaSu
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

Register to announce Your Event

View All Events