Sete Brasil Participacoes SA, the closely held oil-rig supplier that counts Petroleo Brasileiro SA (PETR4) and Banco BTG Pactual SA (BBTG11) among its stakeholders, was approved for an 8.8 billion reais ($3.7 billion) loan from Brazil’s development bank.
The funding is intended to support the construction of the first nine offshore drilling rigs out of a total of 29 rigs commissioned, the development bank known as BNDES said in an e-mailed statement today. Sete Brasil receives orders to supply off-shore rigs and then commissions them to shipyards, without building any itself.
Sete Brasil was created by seven companies, including Banco Bradesco SA, Banco Santander SA and BTG, to commission the construction of and acquire oil rigs for state-owned oil company Petrobras. Sete Brasil has an order to supply 28 rigs to Petrobras as it develops the off-shore pre-salt reserves, the biggest discovery this century.
In addition to the 8.8 billion reais loan, BNDES also authorized BNDESPAR, its investment arm, to subscribe 1.2 billion reais in bonds convertible into Sete Brasil shares.
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