• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 6 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 9 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 13 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 10 hours California's Oil Industry Collapses Despite Shale Boom
  • 14 hours Knock-Knock: Aircraft Carrier Seen As Barometer Of Tensions With Iran
  • 2 hours Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 18 hours IMO2020 To scrub or not to scrub
  • 13 hours UK Needs New Wind Turbines
  • 13 hours Will Canada drop Liberals, vote in Conservatives?
  • 5 hours Shale to be profitable in 2019!!!
  • 8 hours Greenpeace Blocks BP HQ
  • 5 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 19 hours The Consequences: Full-Blown Trade War Will Push World Towards Recession
  • 16 hours Australian Voters Reject 'Climate Change' Politicians
  • 15 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 14 hours methanol fuel cells
  • 8 hours Get First Access To The Oilprice App!
  • 15 hours Wonders of Shale- Gas,bringing investments and jobs to the US
Mystery Tanker With Iranian Oil Unloads In China

Mystery Tanker With Iranian Oil Unloads In China

A tanker carrying Iranian fuel…

Petrobras Creditors Put Up $5.6B Worth Of Bonds In Buyback Offer

Petrobras sign on the wall

Bondholders of Petrobras have tendered US$5.58 billion worth of bonds under a US$6-billion buyback program announced by Brazil’s state-run oil company. Of the total tendered, US$4.89 billion was dollar-denominated and the rest was in euros, according to securities filing on Thursday.

The buyback program will expire on February 8, and is part of Petrobras’ efforts to reduce its sizeable debt burden, which is the largest in the global oil industry at around US$130 billion.

When it announced the plan, the company said that it will repurchase US$2 billion worth of bonds in cash and the rest will be swapped for fresh debt. The initial target amount to be bought back was set at US$4 billion, but after a strong response from bondholders, Petrobras raised this to US$6 billion and extended the deadline for tendering the securities until February 8.

Seven series of both fixed-rate and floating-rate debt were targeted under the program, in total worth US$10 billion, and maturing in 2019 and 2020.

The Brazilian giant is still reeling from the combined blow of the oil price crash and a graft scandal that led to the ousting of the country’s President Dilma Rousseff. Besides debt refinancing, Petrobras has been selling assets in a bid to get back in its feet and has been aided in its efforts by the government. It last year approved legislation removing the requirement for Petrobras to be operator of all new projects in the potentially lucrative pre-salt layer of the Brazilian shelf with a minimum stake of 30 percent.

Things seem to be looking up, however. Earlier this month, the company said it was going to increase exploration, production, and refining expenditure by 30 percent with the outlays for 2017 seen at US$19 billion, up from US$14.6 billion last year. Cash on hand, according to CEO Pedro Parente, stood at US$22 billion at the start of this year, which would keep Petrobras active for another two years.

By Irina Slav for Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News