Petrobras Leans on State Banks to Complete 2015 Funding Needs

Petroleo Brasileiro SA, the state-run oil company all but shut out of bond markets on financial reporting delays, has completed its funding needs for this year after closing four deals worth $6.1 billion.

The Rio de Janeiro-based producer secured 9.5 billion reais ($3.1 billion) in loans from Brazilian banks and signed a $3 billion offshore platform deal, it said in a regulatory filing Friday.

Banco do Brasil SA approved a 4.5-billion-real, six-year credit line, and Caixa Economic Federal and Banco Bradesco SA each approved five-year standby loans worth a combined 5 billion reais, it said, without disclosing the terms. Petrobras also signed a $3 billion sale and leaseback agreement with Standard Chartered PLC for production platforms, according to the filing.

“This is good because it meets the company’s short-term needs,” independent analyst Pedro Galdi said in a phone interview from Sao Paulo. “It is an emergency measure as Petrobras needs money to roll over its debt.”

The company’s reliance on state banks to overcome its urgent financial needs is a sign of government interference, Galdi said. Petrobras announced a $3.5 billion loan from China Development Bank on April 1.

Audited Results

Petrobras plans to release 2014 audited financial results next week, overcoming difficulties it has had calculating graft-related writedowns from a wide-ranging kickback and bribery scheme.

“The operations, along with others already executed this year, meet the financing needs for the company in 2015,” the company said.

The company’s $2.5 billion of bonds due 2024 have rebounded in the past month, climbing to 97.61 cents on the dollar from a record low of 87.59 cents on March 17. Shares, which plunged to the lowest level since 2003 in January, have jumped 46 percent over the past month.

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