Petrobras pays back CDB

Petrobras pays back CDB

Loans Debt Corporate & Sovereign Strategy Economy & Policy Energy Gas Brazil China Asia

Brazil's Petrobras said it has prepaid a $3bn loan from the China Development Bank (CDB) and plans to prepay a $5bn loan on December 16.

The $3bn loan would have come due in 2024, while the $5bn loan matures in 2027, the state-owned oil company said in a statement.

After it makes the $8bn in payments, Petrobras will end a supply agreement for 100,000 barrels of oil equivalent per day to Chinese companies under market conditions.

Petrobras secured $5bn from CDB in 2015 after it was cut off from the financial markets for corruption allegations. It got another $10bn from the Chinese lender in March 2016. 

In March this year, Petrobras signed a five-year, $3.25bn revolving credit line with 18 lenders, led by Citi, Crédit Agricole, JPMorgan, Mizuho and Scotiabank.

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