Brazilian state-controlled oil company Petróleo Brasileiro SA said Monday it issued $4 billion in debt on international markets at the lowest interest average interest rate since 2013.
The notes are due 2022, 2027 and 2044, and Petrobras said it intends to use their net proceeds to pay down bonds coming due next year. Petrobras, the world's most indebted oil company, has nearly $30 billion in debt coming due in 2017 and 2018, including interest and principal.
Monday's bond sale was priced a week ago, which likely helped Petrobras to lock in the favorable interest rate. Since then, allegations of corruption against Brazilian President Michel Temer have called into question the leader's mandate as well as the future of his economic policies, which have aided Petrobras' deleveraging efforts.
The company's shares in São Paulo have fallen about 14% since Wednesday, when the accusations became public.
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(END) Dow Jones Newswires
May 22, 2017 21:32 ET (01:32 GMT)