Petroleo Brasileiro, Brazil's state controlled oil company, plans to sell up to $1.5 billion in stock and bonds to help finance an increase in output.
Petrobras, which is the world's twelfth largest oil company, said in a statement that it plans to sell as much as a billion dollars in preferred stock, possibly in the US. The company's board last night also approved the sale of as much as $500 million in three-year bonds convertible into stock.
Petrobras decided on a share sale after it last month canceled a planned sale of as much as $500 million in fifteen year eurobonds because of weak demand. Analysts said the company may find it hard to sell the shares after Brazil's currency and bonds declined because of investor expectations the country won't be able to meet its debt payments.
“It's not a good moment to sell securities,” said Mauro Mazzaro, an analyst at Planner Corretora de Valores in Sao Paulo.