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Petrobras Will Hold Off Dollar Bond Sales After Record Sale

Petroleo Brasileiro SA, Latin America’s largest company by market value, will hold off selling dollar bonds until 2013 to avoid flooding the market after last week’s record $7 billion sale, said its chief financial officer.

Petrobras, as the Rio de Janeiro-based producer is known, will wait until late 2012 before possibly selling more bonds in euros, CFO Almir Barbassa said in a telephone interview today from Rio de Janeiro. The company will study selling debt in yen this year, he said.

“We just did a large operation in the European market,” Barbassa said. “We’re not going to do a small operation. To return it has to be a big one, so we need to create the conditions.”

Petrobras, Brazil’s state-controlled oil producer, plans to borrow as much as $18 billion a year through 2015, mainly from international markets, to more than double production by 2020 and develop the largest oil discoveries in the Americas in more than three decades.

The company’s Feb. 1 sale of dollar debt matched SABMiller Plc’s $7 billion offering last month as the largest dollar- denominated corporate bond issue this year, according to data compiled by Bloomberg.

Petrobras issued 700 million pounds ($1.1 billion) of bonds due 2026 on Dec. 5, four days after selling 1.85 billion euros ($2.4 billion) of debt maturing in 2018 and 2022 to help finance its five-year $224.7 billion investment plan.

Petrobras gained 3 percent to 25.60 reais at 6:07 p.m. in Sao Paulo. The stock has climbed 19 percent this year, more than the 16 percent increase in Brazil’s benchmark Bovespa Index.

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net

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