RIO DE JANEIRO, May 18 (Reuters) - The board of Brazil's state-led oil company Petroleo Brasileiro SA approved the sale of more than 3 billion reais ($997 million) of bonds in local currency in the Brazilian market, the company said in a securities filing late Friday.
The authorization also allows Petrobras, as the company is commonly known, to raise the sale by as much as 35 percent with additional bonds equivalent to 20 percent and 15 percent of the original 3-billion-real offer.
If all the debt is sold, the total sale will rise to 4.05 billion reais ($1.35 billion). The company did not say how long Petrobras will have to repay investors in the bonds or what interest it intends to pay.
Petrobras, the world's most indebted major oil company, is looking for new sources of capital to repay maturing debt and finance one of the world's largest oil-output expansion plans.
A corruption scandal, poor planning, falling oil prices and delays bringing on planned new output have crimped the company's access to cash and made raising new money more expensive and difficult.
Petrobras said the company will review market conditions during 2015 to decide if it will sell the authorized debt or not.
$1 = 3.01 Brazilian reais Reporting by Jeb Blount; Editing by Bernadette Baum