Jun 1 2015, 14:22 ET | About: Petrobras - Petroleo Brasil... (PBR) | By: Carl Surran, SA News Editor Contact this editor with comments or a news tip
Petrobras (PBR +0.1%) is set to sell a 100-year bond issue in a return to the global capital markets for the first time since it was overwhelmed by a bribery scandal, according to multiple reports.The new bond deal is said to total at least $500M but probably less than $1B, and likely will pay an ~8.85% yield."The idea is to make a bold statement. Doing a tenor that has only been done by a select group of issuers shows strength," says one banker, but the deal may not be viewed positively because of the high interest rate.Other issuance is expected soon, as PBR said last month that it planned to issue up to 4B reais ($1.26B) in debentures in the local market, where interest rates tend to be even higher.
