Shareholders of Petroleo Brasileiro SA, the Brazilian state controlled oil company, gave the company permission to raise up to thirty billion reais ($11.3 billion) through the sale of stock.
In a statement to the Sao Paulo Stock Exchange, Petrobras said shareholders on Monday approved the sale of 200 million non voting shares. The company did not say what the new capital would be used for.
Since last month, Latin America's largest publicly traded company has been unsuccessful in raising cash through the sale of bonds on foreign markets, thwarted by investors' demands for higher yields. It said last month it plans to sell 500 million reais of dollar-indexed bonds on local markets, the first such sale of dollar-linked company debt under new Brazilian borrowing rules.