Petrobras Yields Climb as Share Sale Not Enough: Brazil Credit

Petroleo Brasileiro SA’s borrowing costs are surging to a two-month high on concern the state-owned oil company will tap the bond market for financing even after it completes a stock sale of up to 134 billion reais ($78 billion).

Petrobras’s 7.875 percent bonds due in 2019 yield 4.65 percent, or 100 basis points more than Brazilian government bonds that mature the same year, according to data compiled by Bloomberg. The gap swelled from 57 basis points on Aug. 2.