November 2006
Borrower view: Petrobras returns with a bang
At the end of September Petrobras, the Brazilian state-owned oil and gas company, completed dollar and yen issues within days of each other – its first such deals in two years. CFO Almir Barbassa talks to Chloe Hayward about why the company has suddenly become so active again.
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Petrobras factbox
President: Jose Sergio Gabrielli de Azevedo
Chief financial officer: Almir Barbassa
Industry: oil and gas
Founded: 1953
Headquarters: Rio de Janeiro, Brazil
Revenue: $56.324 billion (2005)
Current debt strategy: liability management and refinancing existing debt to streamline yield curve
Recent deals: dollar issue for $500 million; yen issue for $300 million and loan for $750 million. Asset-backed securitization deals to the value of $1 billion before January 2007 |
A familiar friend resurfaced in the international capital markets in September. After a two-year absence, Petrobras returned with two new bond issues – one yen, one dollar – as well as a syndicated loan.
With a balance sheet of $10 billion, raising cash for its own sake is not necessary for the Brazilian state-owned oil and gas concern. “The sky’s the limit – for oil companies such as Petrobras there is a limitless capacity to issue debt if they wish, as the...
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