Petroleo Brasileiro SA, the state controlled oil firm from Brazil, has announced the sale of US$11 billion of global debt. It is the largest bond offering made by a Latin American company on record.
The record deal was partitioned into six tranches composed of both fixed and floating rate debt with maturity dates ranging from three to thirty years according to sources that told Reuters and IFR.
According to IFR, a Thomson Reuters unit that focuses on capital markets, said that investors made bids above US$50 billion for the debt. This, according to the news agency, is a clear sign of a strong demand for high rated emerging market company instruments.
Petrobras has received more than half of the US$20 billion it is intending to borrow in 2013 to keep the business of oil production and production going despite weak revenues. The company is planning to spend nearly US$237 billion through 2017 in what is viewed as one of the world's biggest corporate investment plans from a single company.
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