Get real

17 May 2013 By Agnes T. Crane

President Dilma Rousseff uses the oil giant for many nationalistic purposes, though strengthening domestic capital markets isn’t apparently one. Issuing a slice of this week’s $11 bln bond offering in reais, though costly, would at least have been a better sort of meddling.

This content is for Subscribers only

To access full Breakingviews.com content you must be a subscriber. Please use the following link to request a trial.

Context News

Petrobras on May 13 raised $11 billion in a six-part dollar-denominated debt offering, making it the largest emerging market bond deal ever. The fundraising will help fund the state-owned oil company’s $237 billion capital expenditure plan. Fitch Ratings said it expects Petrobras will need to borrow more than $12 billion a year.
Brazil’s domestic nonfinancial corporate bond market was $147 billion at the end of September 2012, according to the Bank of International Settlements. Though it has tripled in size since 2008, corporate bonds denominated in reais still represent less than 10 percent of GDP, compared to more than 50 percent in the United States.

Email a friend

Please complete the form below.

Required fields *