Petrobras Heard Scoring Jumbo Bilats

Petrobras is understood to be looking to close more large bilateral loans after recently closing a $1bn 7-year at Libor+179bp through Standard Chartered. Citi and other banks are believed to be working on similar facilities. Though the margin looks thin, the deal also carries fees and a banker familiar with the terms says it offers a decent pickup to the bond. Some loan market specialists say that Petrobras is incurring risk by leaning on relationships, and should look to diversify. “They are always doing bilats but they will definitely need to open up to other source of funding or pay up,” says a banker. “Banks are getting very full of the exposure,” the loans expert adds. Other Brazilian borrowers are heard pursuing a similar strategy. Votorantim is rumored to have secured 7-year money on a bilateral basis at 210bp and 8-year money at 225bp, also in $1bn clips from several banks. Facilities for Fibria were understood to have been wrapped in.