Petróleo Brasileiro Signs Financing Deal with China Development Bank

17 Dec 2016   Brazil, China

Brazil’s state-controlled oil company Petróleo Brasileiro SA said Friday it signed a $5 billion financing deal with the China Development Bank, the latest example of a troubled Latin American issuer reaching to deep-pocketed Chinese institutions for help. The 10-year financing arrangement coincided with the signing of a commercial contract whereby Petrobras, as the energy company is known, will supply 100,000 barrels of oil a day to three Chinese firms. The firms are China National United Oil Corporation, China Zhenhua Oil Co. Ltd. e Chemchina Petrochemical Co. Ltd. This comes as Petrobras, the most indebted oil major in the world with $123 billion of gross debt, looks increasingly unlikely to meet its target of selling $15.1 billion of assets by the end of the year following a number of legal challenges. Brazil’s federal […]

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