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PR Newswire
21-05-2015, 09:45 AM
Here comes the China rescue...
Petrobras turns to China for US$10 billion to avert cash crunch
(May 21): What do you do when you’re burdened with the oil industry’s biggest debt, credit is drying up and some of your main suppliers are under the gun? Call China.
Brazilian President Dilma Rousseff’s strategy of turning to fellow BRIC member China to finance the country’s prized state-controlled oil company is paying off as she and Premier Li Keqiang unveiled US$10 billion in Chinese credit.
The fresh funding comes as Rio de Janeiro-based Petrobras seeks to leave behind the biggest crisis of its almost 62-year history.
Petroleo Brasileiro, as it’s known formally, has been at the centre of a corruption scandal that sent shudders through the country’s business and political elites and all but closed access to bond markets, while ill-conceived projects prompted US$15 billion in writedowns.
“This shows Petrobras is looking for any alternative to avoid cash-flow problems this year,” Bruno Caloni, an analyst at Coinvalores brokerage, said by telephone from Sao Paulo.
“Petrobras is building a trust relationship with China.”
The US$10 billion announcement includes US$5 billion in loans from China Development Bank, of which US$3.5 billion was disbursed last month, and two initial agreements worth a combined US$5 billion with the Industrial and Commercial Bank of China and the country’s Export-Import Bank.
The Chinese financing package surpasses the US$8.5 billion obtained by Petrobras from bond investors in March 2014, the last time the producer -- one of the biggest emerging-market bond issuers --- sold debt in international markets.
...
http://www.theedgemarkets.com/sg/article...ash-crunch
Petrobras turns to China for US$10 billion to avert cash crunch
(May 21): What do you do when you’re burdened with the oil industry’s biggest debt, credit is drying up and some of your main suppliers are under the gun? Call China.
Brazilian President Dilma Rousseff’s strategy of turning to fellow BRIC member China to finance the country’s prized state-controlled oil company is paying off as she and Premier Li Keqiang unveiled US$10 billion in Chinese credit.
The fresh funding comes as Rio de Janeiro-based Petrobras seeks to leave behind the biggest crisis of its almost 62-year history.
Petroleo Brasileiro, as it’s known formally, has been at the centre of a corruption scandal that sent shudders through the country’s business and political elites and all but closed access to bond markets, while ill-conceived projects prompted US$15 billion in writedowns.
“This shows Petrobras is looking for any alternative to avoid cash-flow problems this year,” Bruno Caloni, an analyst at Coinvalores brokerage, said by telephone from Sao Paulo.
“Petrobras is building a trust relationship with China.”
The US$10 billion announcement includes US$5 billion in loans from China Development Bank, of which US$3.5 billion was disbursed last month, and two initial agreements worth a combined US$5 billion with the Industrial and Commercial Bank of China and the country’s Export-Import Bank.
The Chinese financing package surpasses the US$8.5 billion obtained by Petrobras from bond investors in March 2014, the last time the producer -- one of the biggest emerging-market bond issuers --- sold debt in international markets.
...
http://www.theedgemarkets.com/sg/article...ash-crunch
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