Petroleo Brasileiro Files To Raise $64.5 Billion: A Move To Grow the Oil And Gas Industry of Brazil

Petroleo Brasileiro Files To Raise $64.5 Billion: A Move To Grow the Oil And Gas Industry of Brazil

Summary

Petroleo Brasileiro SA. (Petrobras) filed a preliminary prospectus to issue 2.17 billion common shares, and 1.59 billion preferred shares in an international offering outside Brazil and a concurrent offering in Brazil, to raise gross proceeds of $64.5 billion. The company will raise (Brazilian Real) BRL 67.8 billion ($38.90 billion) through the issue of common shares, and BRL 43.8 billion ($25.13 billion) through the issue of preferred shares. In the international offering, the shares are being offered in the form of shares or in the form of American Depositary Shares (ADSs), each of which represents either two common shares (a common ADS) or two preferred shares.The company has also granted the international underwriters and the Brazilian underwriters options for a period of up to 30 days beginning on the date of the closing to purchase additional ADSs or to place additional shares to cover over-allotments. The options are for an aggregate of up to an additional 188 million common and preferred shares, including shares in the form of ADSs. The company intends to use the net proceeds from the offering to pay the initial purchase price under the agreement and to finance investments for the development of its business segments under its 2010-2014 business plan

Scope

• Petrobraas in raising funds for developinhg brazil's oil and gas industry

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