- Petrobras (NYSE:PBR) raised $6.75B today from a sale of five- and 10-year dollar-denominated bonds, in the first sale in global capital markets by any Brazilian company since last June and the first to test investor sentiment toward Brazil since Dilma Rousseff was ousted last week to face an impeachment trial.
- Reuters reports that investors placed more than $20B worth of bids for the new securities, a strong sign of backing for a company that was the largest emerging market corporate borrower in recent decades.
- PBR needed to tap the market, but the deal was costly, as it sold $5B in five-year notes at 8.625% and $1.75B in 10-year notes at 9%; the company had last sold similar debt in March 2014, bearing respective interest rates of 4.875% and 6.256%.