Petrobras Says It May Sell Euro-Denominated Bonds in 2013

Petroleo Brasileiro SA, which sold a record amount of dollar bonds this month, said it may sell euro-denominated notes later this year as the state-run oil producer seeks to raise $20 billion in debt for investments.

“If there’s appetite, if we feel there’s demand, we could issue if we liked the prices,” Chief Financial Officer Almir Barbassa said in a telephone interview today from the company’s headquarters in Rio de Janeiro. “The euro market is our second largest. We only issue once a year in any given currency,” he said, dismissing a second dollar sale in 2013.

Petrobras, as the No. 1 producer in deep waters is known, raised $11 billion in a May 13 sale, a record for emerging-market issuers. The issuance carried an average maturity of 10.33 years at an average 3.79 percent, making it the cheapest debt Petrobras has ever sold. The book-building process took just six hours and saw an increase in demand from Asian investors relative to past sales, Barbassa said.

Earlier in the year Petrobras took out $7 billion in bank loans, which puts total debt raised this year at $18 billion. The company is seeking funding for a $237 million, five-year plan to develop the world’s largest oil discoveries this century and expand refining capacity.

Petrobras sees the Brazilian real continuing to trade at about 2 per U.S. dollar this year and appreciate next year, he said.

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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