Corporate Issuer, Corporate Liability Management and Syndicated Loan of the Year: Petrobras

Corporate Issuer, Corporate Liability Management and Syndicated Loan of the Year: Petrobras


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Over the last few years, Petrobras has been on a mission to cut its debt load, sell assets and reduce costs to get its financial house in order. And the company is undoubtedly in better financial shape now than several years ago.

Last year, Petrobras worked across the capital markets as it continued with its strategy to strengthen its finances, using a wide range of transactions. Petrobras has been on a deleveraging push after the company’s debt level rose above $100 billion in 2017.

In December 2017, Petrobras raised 5.02 billion reais with the listing of its fuel distribution subsidiary in one of Brazil’s biggest stock flotations that year. Petrobras opted for a lower price, but increased the size of the offer, with investors exercising the 15% “greenshoe” option for an over-allotment of shares.

Petrobras also tapped the loan market in March 2018 for a $4.35 billion revolving credit facility from 17 banks. Bookrunners on the loan included BNP Paribas, Citi, Crédit Agricole and Mizuho. Petrobras said it planned to use the proceeds to pay down existing debts in a transaction four months after the company made its comeback to the loan market following a four-year hiatus with a $1 billion syndicated loan.

In another transaction, the company completed a tender offer in June when investors owning some $12.836 billion-equivalent of Petrobras dollar and euro bonds offered to sell their notes in a tender offer that attracted more than three times the $4-billion limit that the Brazilian oil company had set for the buy-back.

Bradesco, Banco Safra, Citi, Deutsche Bank, Morgan Stanley, Scotiabank and Standard Chartered were lead managers on the tender offer.