By Brazil Stock Guide – Petrobras (B3: PETR4; NYSE: PBR) priced $2 billion of international bonds in two tranches due 2030 and 2036. The deal, set on Sept. 3, marked the tightest spreads to Brazil’s sovereign curve since 2006 and 2002, and the lowest premiums over US Treasuries since 2011 and 2001.
Investor demand reached nearly $6.8 billion, or 3.4 times the amount issued, with 190 orders from North America, Europe, Asia and Latin America. The sale was conducted through Petrobras Global Finance B.V., registered with the SEC and fully guaranteed by the company.
Benchmark deal for Brazilian corporates
The 2030 notes raised $1 billion with a 5.125% coupon, priced to yield 5.35% annually. The 2036 tranche, also $1 billion, carried a 6.25% coupon and yielded 6.55%. Both tranches set new benchmarks for Petrobras’s curve, with the tightest spreads in decades.
The offering supports the company’s strategy to extend debt maturities and cut funding costs amid oil market volatility and leverage goals. Net proceeds will go to general corporate purposes.
The strong reception contrasts with a global risk-off backdrop, where Latin American issuers are paying higher premiums to access markets. Petrobras’s pricing may reset references for future Brazilian and regional corporate deals.