Bloomberg News

Petrobras May Sell Bonds in Reais on Weak Dollar, CEO Says

September 15, 2011

(Updates with CEO’s comments in second, fourth paragraphs.)

Sept. 15 (Bloomberg) -- Petroleo Brasileiro SA, Brazil’s state-run oil producer, said it may sell bonds in reais to help finance the world’s largest oil-industry spending plan.

“The real is strong and the dollar is weak,” making a local-currency issue more attractive, Chief Executive Officer Jose Sergio Gabrielli told reporters today in Rio de Janeiro. Brazil’s real has rallied 35 percent against the U.S. dollar since the start of 2009.

Petrobras’s borrowing capacity hasn’t been affected by the sovereign-debt crisis in Europe because the company has attractive projects, Gabrielli said. Petrobras needs to raise as much as $90 billion over the next five years to help finance $224.7 billion in investments. The company plans to more than double production in the next 10 years.

“There’s no lack of money in the market,” Gabrielli said. “If you have good projects, you get the funds.”

--Editors: Jessica Brice, Robin Saponar

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: Jessica Brice at jbrice1@bloomberg.net


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