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Brazil’s Petrobras on Monday, proposed changes that could reduce the future dividend payouts and potential of extraordinary dividend payments. The board proposed to create a capital-remuneration reserve that could be used for other purposes such as share buybacks or to absorb losses. However, four of the eleven board members voted against the proposal, as per sources. Earlier, in July, the company had set a more conservative dividend payout policy, curbing dividends to 45% of its free cash flow, from the earlier 60% payout. Brazil’s President Lula also wants Petrobras to invest more in refining and renewable energy rather than paying dividends.
Petrobras’ dollar bonds were trading stable with its 5.75% 2029s at 97.3 cents on the dollar, yielding 6.37%
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