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Petrobras’s China Cash Stems Bond Tumble But Comes With a Stigma

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Brazil’s state-run Petroleo Brasileiro SA may be putting itself in the company of some of Latin America’s most distressed borrowers by turning to China for loans, but its bondholders don’t mind.

They’re just thrilled to see the oil producer get its hands on $3.5 billion of cash. The company’s benchmark bonds rallied the most in more than three months after the agreement with China Development Bank Corp. was announced April 1, rebounding after falling to a record low in March.