Petrobras, Brazil's state-run oil producer, could borrow as much as $47 billion by 2014 as the company taps into Brazil's pre-salt oil fields, which are among the world's largest oil finds in several decades. The news comes as investors and Brazil's government have recently said they would like to see Petrobras scale back spending.
Last year, Petrobras (PBR) raised $70 billion in the largest share sale on record to help finance a 2010-2014 exploration and production budget of $224 billion, by far the largest of the world's oil majors. The company is still ironing out details of its 2011-2015 spending plan.
Petrobras will need to raise about $17 billion of net debt and plans to refinance about $29 billion of existing debt in that time, Bloomberg News reported, citing the company. The company sold $6 billion in dollar-denominated bonds in January, but is unlikely to issue more debt in dollars this year, opting for euros or pounds.
A decline the Brazilian real is unlikely to hamper the company's debt raising efforts because the company is naturally hedged to the U.S. dollar, Reuters reported. Petrobras 10-year bonds currently yield 4.88%.