Petroleo Brasileiro SA secured a $10 billion loan from China Development Bank Corp. as the beleaguered state-owned oil producer endures the worst crude market in a generation and faces more than double that amount in maturities over the next two years.
The lifeline is part of a deal to supply crude to the Asian country, Petrobras said in a filing on Friday. The amount of crude that will be supplied wasn’t disclosed. Shares gained 4.3 percent to 5.09 reais ($1.28) at 10:11 a.m. in Sao Paulo.
China has invested in oil-rich nations to ensure supplies to the world’s biggest crude market after the U.S. Similar deals have helped Venezuela fund its ballooning debt. Petrobras has been mired in Brazil’s worst-ever corruption scandal just as the Latin American nation goes through a recession, reducing domestic demand, and oil prices are 70 percent lower than in mid-2014.Read the Full Article Here