Petrobras – Investor Relations

Petrobras

Investor Relations

US$ 1.5 billion issue of Global Notes, due March 2019

Rio de Janeiro, February 12 2009 – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that, through its wholly-owned subsidiary Petrobras International Finance Company (“PifCo), completed yesterday the issuance of US$ 1.5 billion in unsecured, unsubordinated senior debt format due March 15, 2019 in the international capital market, under the following terms:

· Coupon: 7.875% p.a.

· Yield to Maturity for the Investors: 8.125%

· Spread to American Treasury Note: 518 basis points

· Interest Payment: March 15 and September 15 of each year, beginning on September 15, 2009 .

· Ratings: Baa1 Stable (Moody’s); BBB Stable (S&P); BBB Stable (Fitch)

· Joint Bookrunners: HSBC Securities (USA) Inc., J.P. Morgan Securities Inc. & Santander Investment Securities Inc.

· Co-Managers: Citigroup Global Markets Inc. & BB Securities Limited
The demand was 3.5 times higher than the final volume and the notes were distributed to over 230 investors, the majority of which dedicated to high grade fixed income markets. The funds will be used for general corporate purposes, including the financing of the Business Plan 2009-1013.
 
This was the first issuance of a Brazilian company since July 2008, when the effects of the international financial crises exacerbated. Also, it was the first one coordinated by institutions which granted Petrobras a two years bridge loan funding until the company could better access the capital markets, via long term bond issues, as announced during the release of the Business Plan 2009-2013.
 
These Global Notes constitute general senior unsecured and unsubordinated obligations of PifCo. Petrobras will unconditionally and irrevocably guarantee the full and punctual payment when due and this guarantee will rank paripassu, without any preferences among themselves, with all other unsecured and unsubordinated obligations of Petrobras.

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