As part of its efforts to fund its five-year budget of nearly $225 billion, Petrobras, Brazil's state-run oil company, could sell $91 billion in debt. Petrobras is spending more than any of the other major integrated oil companies in the world as it taps into Brazil's pre-salt oil fields.
Petrobras (PBR) could also sell up to $13.6 billion of assets as part of its recently unveiled five-year spending plan. Earlier this year, the company said it would probably sell bonds over the next few years, but the company added that it would not issue dollar-denominated debt.
The company did not highlight specific assets it might sell. Petrobras will raise up to $12 billion a year in net debt, excluding amortization costs and total debt as a percentage of equity will increase to as much as 35 percent by the end of 2015, up from 17 percent at the end of the first quarter, according to Bloomberg News.
Petrobras said 95 percent of its budget will be used for domestic projects. The company pumped about 2.64 million barrels of oil per day last month and is hoping to be producing 4 million barrels per day by 2015 and 6 million barrels per day by 2020.