June 25, 2019 / 11:16 PM / 23 days ago

Brazil's Petrobras prices secondary offering at 30.25 reais per share: sources

Brazil's state-run Petrobras oil company headquarters is pictured in Rio de Janeiro, Brazil May 27, 2019. Picture taken May 27, 2019. REUTERS/Sergio Moraes

SAO PAULO (Reuters) - Brazilian state-controlled oil company Petroleo Brasileiro SA priced a secondary share offering on Tuesday at 30.25 reais per common share, two sources with knowledge of the matter said.

State-owned lender Caixa Economica Federal has agreed to sell its 2.3% stake in Petrobras at a 1.5% discount to Tuesday’s closing price of 30.70 reais per common share. Large demand from foreign investors allowed the offering to price at a discount lower than the 4% average in Brazilian secondary offerings in recent years.

The bank will raise 7.3 billion reais ($1.9 billion) with the sale of 241.3 million common shares, as Caixa aims to increase early repayment of loans to Brazil’s National Treasury.

Investment banking units of Caixa, UBS Group, Morgan Stanley, Bank of America and XP Investimentos managed the offering.

($1 = 3.8468 reais)

Reporting by Tatiana Bautzer and Carolina Mandl, Editing by Rosalba O'Brien

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