Petrobas raises $11bn investment

Brazilian oil group Petrobas said on Tuesday that it had raised $11.0 billion on the corporate bond market, marking a record high amount for such an issue in an emerging economy. The company, controlled by the Brazilian state, is carrying a heavy amount of debt, but it will use the money to help finance investment of $237 billion from 2012-2016 to develop oil reserves off Brazil\'s shoreline. This year alone, Petrobas intends to borrow about $20 billion, the group\'s finance director said last month. The latest issue was made in dollars and in six slices. The bonds issued have four redemption dates, in three, five, 10 and 30 years\' time. They were issued at fixed and at variable interest rates. The fixed rates varied from 2.14 percent at three years to 5.76 percent at 30 years, Petrobas said. Market sources cited by Dow Jones Newswires said that demand was extremely strong, totalling more than $40 billion. The company took advantage of strong conditions on the global bond markets in general where funds are plentiful, enabling states and businesses to raise money at relatively low interest rates. Petrobas had considered a big sale of assets to raise funds for its projects, but demand for such assets was low and so it turned to the corporate bond market instead. Meanwhile the Brazilian government has put out to tender the rights to prospect for oil on new blocs off the northeast coast. This has attracted interest from many companies, including Petrobas, which hope to find more big reserves as happened off the southeast coast in 2008.