January 1, 2013
Bigger is not always better. But in the world of one-day capital markets executions, if it is truly big, it had better be done truly well. Brazil’s Petrobras raised the bar for itself in February. The $7 billion four-tranche sale was massive, but required delicate execution.
It set a new precedent for LatAm issuers.
The state-controlled oil company is one of only a handful of borrowers in the world that can execute multi-billion dollar deals that warrant four tranches, says Chris Gilfond, co-head of LatAm debt at Citi, a bookrunner on the transaction with Banco do Brasil, Itaú, JPMorgan, Morgan Stanley and Santander.
The sale topped Petrobras’ 2011 $6 billion three-tranche offering and
2015, 2017, 2021, 2041