Petrobras – Investor Relations

Petrobras

Investor Relations

Petrobras Issues US$ 6 billion in Global Notes

Rio de Janeiro, January 27, 2011 – Petróleo Brasileiro S.A. - Petrobras announces that it closed today a US$ 6 billion issuance of 5, 10 and 30 year notes in the international capital markets. The notes were issued by Petrobras’ wholly-owned subsidiary Petrobras International Finance Company (“PifCo”) and constitute general senior unsecured and unsubordinated obligations of PifCo that are unconditionally and irrevocably guaranteed by Petrobras. Pricing occurred on January 20, 2011 and the terms of the notes are as follows:


2016 Notes

2021 Notes

2041 Notes

Amount

US$ 2.5 billion

US$ 2.5 billion

US$ 1.0 billion

Coupon

3.875%

5.375%

6.750%

Issue Price

99.663%

99.801%

99.288%

Yield to Investors

3.950%

5.401%

6.806%

Due Date

01/27/2016

01/27/2021

01/27/2041

1st Interest Payment Date

07/27/2011

Interest Payment Dates

January 27 and July 27 of each year

Ratings

Baa1(Moody´s), BBB- (Standard & Poor´s) and BBB (Fitch)


Joint Bookrunners

BTG Pactual US Capital Corp, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Itau BBA USA Securities Inc., J.P. Morgan Securities LLC and Santander Investment Securities Inc

Co-managers

Credit Agricole Securities (USA) Inc. and Mitsubishi UFJ Securities (USA), Inc.


The transaction was the largest-ever corporate bond offering by a Brazilian company in the international capital markets, and the book was oversubscribed 2.5 times with more than 463 investors from the United States, Europe, Asia and Latin America participating, most of them dedicated to the high grade market.


 

Petrobras will use the proceeds of this multi-tranche offering to finance Petrobras’ planned capital expenditure under its 2010-2014 Business Plan while maintaining an adequate capital structure and staying within Petrobras’ targeted financial leverage ratios in accordance with its 2010-2014 Business Plan.

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