Petrobras Global Finance, a wholly-owned subsidiary of Brazil-based oil giant Petrobras is planning to issue one or more series of global bonds in the US market, the media reported.
Reportedly, the bonds issued by Petrobras Global Finance will be fully and unconditionally guaranteed by the parent company.
In a statement, Petrobras has revealed that it has hired BNP Paribas Securities, BofA Securities, Itau BBA USA Securities, JP Morgan Securities, Scotia Capital (USA), and SMBC Nikko Securities Americas to conduct the bond issue as coordinators.
Reportedly, the amount generated from the bond issuance will be used by Petrobras Global Finance for general corporate purposes.
Petrobras has been selling non-core assets and minority stakes in oilfields in Brazil and elsewhere, aiming to cut its massive debt. But, according to Reuters, the coronavirus pandemic and the oil price crash that followed have upended Petrobras’s plans to proceed with a sale of a minority stake in the Marlim cluster of four oilfields.
Recently, Petrobras has set a record by exporting 1 million barrel of oil per day in April as domestic demand plunged. During the first four months of 2020, around 60 percent of Petrobras’ exports went to China.
Previously, Petrobras set its oil export record in December 2019, when it exported 771,000 barrels of oil per day.
In a statement, the company said, “The company continues monitoring the market and, if necessary, will make new adjustments always ensuring safety conditions for people, operations and processes.”