Petrobras Reported Eyeing Jumbo Debt

Petrobras plans to raise $60bn from the debt markets in the next 5 years, according to local press and wire reports citing CEO Jose Sergio Gabrielli. Fresh off of a $70bn equity raise last month, the state-run oil producer will now turn to debt markets as it looks to fund an investment plan of more than $220bn. Petrobras does not foresee additional equity, Gabrielli is reported as saying. The company’s borrowing needs, and the effect they might have on its credit ratings, have been among the factors dragging down the stock this year. Petrobras preferred and common shares closed Friday at BRL26.00 and BRL29.00, respectively, representing drops of 3.0% and 4.1% since the September 23 equity sale, and of 28.8% and 29.0% on the year.