Petrobras Rig-Builder Said Close to Receiving Delayed BNDES Loan

Brazil’s BNDES development bank is expected to authorize as soon as next week the first disbursement of a 10 billion-real ($3.8 billion) loan to Sete Brasil Participacoes SA, ending a two-year delay that threatened to send the oil-rig supplier into default, two people with direct knowledge of the matter said.

The BNDES probably will sign the contract to disburse the first tranche of 3.5 billion reais, with Sete Brasil receiving the cash in one or two months, the people said, asking not to be named because the discussions are private. BNDES postponed first the approval and then the disbursement several times since late 2012 because of a lack of guarantees, as well as setbacks on international financing and on Sete Brasil contracts with rig operators, the people said.