Petrobras Inks $5bn Revolving Credit Line Deal

Instant Max AI

(Petrobras, 16.Dec.2021) — Petrobras signed, today, a revolving credit facility (RCF) in the amount of $5bn, maturing in December 2026, with the possibility of being extended in up to two years.

The agreement, signed with 16 banks, allows the company to draw on the line until the month before maturity, and will be used to replace the $4.35bn revolving credit facility contracted in 2018, which was due to mature in March 2023 and was cancelled on the current date.

The transaction creates an additional alternative source of funds for the company to use according to its needs. As a result, Petrobras will be able to use its cash more efficiently, maintaining access to liquidity without incurring load costs.

The banks that participated in this operation were:

– Joint Bookrunners: Bank of America, Bank of China, BNP Paribas, Citibank, Credit Agricole, JPMorgan Chase Bank, Mizuho, MUFG, Sumitomo Mitsui Banking Corporation and The Bank of Nova Scotia;

– Mandated Lead Arrangers: HSBC, Banco Santander;

– Lead Managers: Morgan Stanley;

– Participants: Deutsche Bank, ICBC, Bank of Baroda.

The operation is in line with the company’s liability management strategy, aiming at improving the debt amortization profile and reducing costs, considering the gross debt target foreseen in its 2022-2026 Strategic Plan.

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