Brazil's state-owned oil giant Petrobras on Thursday sold $6 billion in bonds of different maturities, with spreads at the tight end of the range initially offered to investors, Thomson Reuters' IFR reported. Petrobras priced $2.5 billion in five-year bonds at 99.663 to yield 3.95 percent, or a spread of 190 basis points over comparable US Treasuries.
It priced another $2.5 billion in 10-year bonds at 99.801 and a yield of 5.401 percent, equivalent to a spread of 195 basis points over Treasuries. It also priced $1 billion in 30-year bonds at 99.288 to yield 6.806 percent, or 220 basis points over Treasuries.
Demand for the bonds reached $11 billion, IFR said, which allowed the oil company to pay spreads five basis points tighter than it had initially offered as guidance. The bonds will settle on January 27. Petrobras plans to raise between $15 billion and $16 billion this year, Finance Director Almir Barbassa had said in December, without specifying the source of the funds. That amount is about the same as the company raised in 2010, beyond some $70 billion obtained in a massive share offer. The deal was managed by BTG Pactual, Citigroup, HSBC, Itau, J.P. Morgan and Santander.