Petrobras launches new $2B bond tender

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Petrobras (PBR +0.8%) launches Latin America's first cross-border bond sale of the year, offering five- and 10-year bonds to finance an up to $2B tender as part of the debt-ridden company's efforts to term out upcoming maturities.

At initial price thoughts of 6.5% area on the five-year bond and 7.75% area on the 10-year, bankers are seeking to entice investors with generous premiums.

"Petrobras isn't in a position these days where it can skin every last basis point on their deals," a banker tells Reuters.