Brazil state-owned oil company Petrobras raised $1.5bn via a 30Y dollar bond at a yield of 5.75%, 50bp inside initial guidance of 6.25% area. Proceeds will be used to buyback $2.5bn worth of bonds with maturities across 2025s to 2050s. The deadline for the offer is June 8. The bonds were rated BB-. The bonds will be issued by Petrobras Global Finance. Bank of America Corp., Goldman Sachs Group Inc., Banco Itaú BBA SA, JPMorgan Chase & Co., Mitsubishi UFJ Financial Group Inc., Banco Santander SA and UBS Group AG were the book-runners of the deal. Petrobras has reduced financial debt by more than $72bn from 2015 to 2020 to $54bn. Fitch expects Petrobras to continue deleveraging in the future after leverage remained unchanged even with the market downturn in 2020 leaving leverage at the same levels as 2019.
Petrobras’ USD bonds were stable with its 5.999% 2028s trading at 114.875, yielding 3.47%. The new 30Y bonds were priced at par with their older 6.75% bonds due June 2050 yielding 5.73% despite a longer maturity.
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