Petrobras to sell infrastructure bonds in wake of Vale deal -source

SAO PAULO Wed Feb 19, 2014 7:12am EST

SAO PAULO Feb 19 (Reuters) - PetrĂ³leo Brasileiro SA is considering the sale of about 3 billion reais ($1.26 billion) in local notes to fund infrastructure projects, helping the state-controlled oil company tap investors beyond its traditional base, a source with direct knowledge of the situation said.

The Rio de Janeiro-based company, which has not sold senior debt in the domestic market in 12 years, is in talks with banks on how to place an offering of so-called infrastructure debentures soon, said the source, who requested anonymity because the plan is in the works. The inflation-linked notes would be split into different maturities, the source added.

The domestic debt offering could also help Petrobras buy time ahead of a planned comeback to international debt markets. According to the source, the company wants to clinch the sale of dollar-denominated bonds during the first half and extend a successful offering of euro- and British pound-denominated securities in the second half.

A Petrobras spokesman did not have an immediate comment.

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