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Dear Mr/Mrsr Ramin Farzanehfar,
Petrobras Issues US$ 11 billion in Global Notes
Rio de Janeiro, May 23rd, 2013 – Petróleo Brasileiro S.A – Petrobras announces that it closed on May 20th the issuance of Global Notes in the international capital markets in the amount of US$ 11 billion through its wholly owned subsidiary Petrobras Global Finance B.V.
(“PGF”).
The transaction, priced on May 13th, was comprised by fixed rate notes due 2016, 2019, 2023 and 2043 and floating rate notes due 2016 and
2019.
The transaction was executed in one day, with a demand of approximately US$ 42 billion as a result of more than 2,000 orders. The average interest rate of the notes was 3.79% with an average life of 10.37 years.
This deal sets the following records:
- Largest Emerging Market USD bond offering ever
- 5th largest USD bond offering ever
- 2nd largest USD bond offering this year
The final allocation had the following distribution: United States (73%), Europe (17%) and Asia (7%), mostly dedicated to the high grade market.
The success of the transaction indicates investor confidence in the fundamentals of the Company, its growth strategy and its commitment to maintain investment grade rating, as indicated by debt ratio targets and significant cash flow. Additionally, the transaction is aligned with the fund-raising strategy announced by the Company to access the US dollar market once a year with a jumbo transaction in accordance with the funding requirements of the 2013 – 2017 Business and
Management Plan.
Find below the main information about the Notes:
| Fixed Rate Notes |
2016 Notes |
2019 Notes |
2023 Notes |
2043 Notes |
| Volume |
US$ 1.25 billion |
US$ 2.0 billion |
US$ 3.5 billion |
US$ 1.75 billion |
| Coupon |
2.000% |
3.000% |
4.375% |
5.625% |
| Issue Price |
99.584% |
99.352% |
98.828% |
98.027% |
| Yield to Investor |
2.144 % |
3.125 % |
4.522% |
5.764 % |
| Maturity |
May 20, 2016 |
Jan 15, 2019 |
May 20, 2023 |
May 20, 2043 |
| 1st Interest Payment |
Nov 20, 2013 |
Jan 15, 2014 |
Nov 20, 2013 |
Nov 20, 2013 |
| Interest Payment Dates |
May 20 and Nov 20, each year |
Jan 15 and Jul 15, each year |
May 20 and Nov 20, each year |
May 20 and Nov 20, each year |
| Floating Rate Notes |
2016 Notes |
2019 Notes |
| Volume |
US$ 1.0 billion |
US$ 1.5 billion |
| Coupon |
3-month US$ LIBOR + 162 bps |
3-month US$ LIBOR + 214 bps |
| Maturity |
May 20, 2016 |
Jan 15, 2019 |
| 1st Interest Payment |
August 20, 2013 |
July 15, 2013 |
| Interest Payment Dates |
Feb 20, May 20, Aug 20 and Nov 20, each year |
Jan 15, Apr 15, Jul 15 and Oct 15, each year |
The ratings of the Notes were A3 (Moodys), BBB (Standard & Poors) and BBB (Fitch) and the proceeds will be used to fund Petrobras 2013-2017 Business Plan and for general corporate purposes.
BB Securities Ltd., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Itau BBA USA Securities, Inc., J.P.
Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co.
LLC are the joint bookrunners for the transaction and Mitsubishi UFJ Securities (USA), Inc.
and Standard Chartered Bank are the co-managers.
Sincerely,
Investor Relations.
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