Tuesday, June 2, 2015

Brazil Oil Giant Petrobras Sells $2.5 Billion in Bonds

Brazil’s state-controlled oil giant, Petroleo Brasileiro SA, PETR4.BR +5.38%  sold $2.5 billion in 100-year bonds on Monday, the latest sign of robust demand from investors for bonds that offer higher rates than safe government debt.

The bonds were sold at a rate of 8.45% and attracted about $13 billion in orders from investors, according to an investor tracking the sale. In comparison, a 30-year U.S. Treasury bond yields 2.94%, and a Mexican government bond that matures in 2110 recently traded at a yield of 5.52%, according to FactSet.

Some analysts were surprised by the strong demand and the long term of the Petrobras debt—such lengthy bond issuance is typically seen from highly-rated institutions like universities. Petrobras carries a junk rating from Moody’s Investors Service and is rated just one notch above junk by Standard & Poor’s Ratings Services and Fitch Ratings. The company has been dealing with the fallout of a corruption scandal that resulted in management changes and delays in reporting earnings.

Read full article

No comments:

Popular Posts

New York Time

Copyright 2017 ©
Netvision SA and PlanetM
New York, New York, USA 10008
You can copy this content without permission but you must notify us via email.
Otherwise, it is illegal. All rights reserved worldwide
Updated by Carlos Vassallo

Total Pageviews last month