Brazilian President Jair Bolsonaro is now inclined to privatize Brazilian oil company Petroleo Brasileiro (Petrobras). The President added that he would discuss the idea with economic advisors in order to make a final decision and the decision comes after declaring he was frustrated on accusations of being responsible for gasoline price increases. A day prior, the Economy Minister Paulo Guedes suggested the government could sell part of its Petrobras’ stake in order to fund welfare programs. Bolsonaro said, “Now I want to privatize Petrobras… I will check with the economic team what we can do about it. Because I cannot control the company, I cannot direct gasoline prices, but when it rises it is my fault.” Petrobras also received a proposal from a group led by Aguila Energia, offering more than $1.5bn to acquire onshore Petrobras’ fields in the state of Bahia. Petrobras said that it will begin negotiating a sales contract since Aquila’s bid was the highest.
Petrobras USD bonds were trading stable with its 5.75% 2029s trading at 111.338, yielding 3.94%
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