Dear Mr/Mrs Ramin Farzanehfar,
Rio de Janeiro, February 6, 2012 - Petroleo Brasileiro SA - Petrobras announces that it closed today the issuance of Global Notes in the international capital markets in the amount of US$ 7 billion. The Notes were issued by Petrobras’ wholly owned subsidiary, Petrobras International Finance Company ("PifCo").
The transaction - the issuance of notes due 2015 and 2017 and the reopening of the bonds due 2021 and 2041 - was
priced on February 1, 2012 .
The transaction was executed in one day, with a demand of approximately US$ 25 billion as a result of more than 1,600 orders coming from more than 700 investors. This issue sets the following records:
- Largest ever Brazilian international bond offering
- Largest emerging market corporate bond offering in recent years
- Lowest yield for a Brazilian company (03 and 05 year terms)
- Lowest yield for the 10 year bond issued by Petrobras
- Lowest yield for a 30 year for a Brazilian Company
The final allocation was more concentrated in the United States (58.4%), Europe (28.1%) and Asia, 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 the investment grade, as indicated by monitoring debt ratios targets and presenting significant cash generation levels. Additionally, the transaction is aligned with the fund-raising strategy announced by the Company to access the market at specific moments and for volumes required for the financing
of investments as defined in the Business Plan.
Here is the main information regarding the issue and reopening:
| New issue |
2015 Notes |
2017 Notes |
| Volume |
US$ 1.25 billion |
US$ 1.75 billion |
| Coupon |
2.875% |
3.50% |
| Issue Price |
99.499% |
99.419% |
| Yield to Investor |
3.051% |
3.628% |
| Maturity |
02/06/2015 |
02/06/2017 |
| 1st Pmt Date Interest |
08/06/2012 |
08/06/2012 |
| Dates of Interest Pmt |
February 06 and August 06 of each year |
| Reopening |
2021 Notes |
2041 Notes |
| Re-tap amount |
US$ 2.75 billion |
US$ 1.25 billion |
| Total Amount after the Re-tap |
US$ 5.25 billion |
US$ 2.25 billion |
| Coupon |
5.375% |
6.750% |
| Price of Re-tap |
104.181% |
111.208% |
| Yield to Investors (original) |
5.401% |
6.806% |
| Yield to Investors (Re-tap) |
4.796% |
5.935% |
| Maturity |
01/27/2021 |
01/27/2041 |
| Dates of Interest Pmt |
January 27 and July 27 of each year |
The ratings of the Notes were Baa1 (Moodys), BBB (Standard & Poors) and BBB (Fitch) and Petrobras will use the proceeds of this multi-tranche offering for general corporate purposes.
BB Securities Ltd, Citigroup Global Markets Inc., Itau BBA USA Securities, Inc., J.P.
Morgan Securities LLC, Morgan Stanley & Co.
LLC and Santander Investment Securities Inc.
were the joint lead managers for the transaction and Banco Votorantim Nassau Branch and Mitsubishi UFJ Securities (USA), Inc.
were the co-managers.
Sincerely,
Investor Relations.
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www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S.
A.
- PETROBRAS
Investor Relations Department I E-mail: /
Av.
República do Chile, 65 – 22nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947
This document may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that merely reflect the expectations of the Company’s management.
Such terms as
“anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forward-looking statements.
These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company.
Therefore, the future results of operations may differ from current expectations, and readers
must not base their expectations exclusively on the information presented herein.
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