UPDATE 1-Petrobras on target to print multi-billion dollar bond

lunes 10 de marzo de 2014 11:41 GYT

By Paul Kilby

NEW YORK, March 10 (IFR) - Brazilian oil company Petrobras is offering investors a new issue concession of around 30-35bp on its new multi-billion dollar, six-part bond offering expected to price later on Monday.

Orders for the transaction have already reached USD12bn in what could be biggest ever from a corporate borrower in the region if it surpasses the company's record-breaking USD11bn six-tranche transaction from last May.

Each year Petrobras has broken new ground in terms of size, and this time is expected to be no different.

"If you have a six tranche offering, that indicates they are gunning for a decently sized deal," said one observer.

The transaction comprises of three-year fixed and floating rate bonds, a six-year floater and fixed, as well as fixed-rated 10- and 30-year tranches.

Initial price thoughts have been set at Treasuries plus 260 basis points (bp), 3-month Libor plus 246bp, Treasuries plus 340bp, 3-month Libor plus 298bp, Treasuries plus 360bp and Treasuries plus 370bp, respectively, by lead managers HSBC, JP Morgan, Citi, Bank of China, BB Securities and BBI.

Banca IMI and Scotiabank are co-managers.   Continuación...