Article: China Petrobras loan cuts need for government bailout -Itau BBA
A credit line of up to $10 billion from China’s state development bank to Petrobras cuts the risk that Brazil’s state-run oil company would need government assistance to pay for debt and investment in 2016, Banco Itau BBA said on Monday.
The loan from China Development Bank, announced on Friday, is enough to pay nearly all the $12 billion in bond and commercial bank debt coming due this year at Petroleo Brasileiro SA, as Petrobras is formally known.
With about $25 billion in cash at the end of the third quarter and about $19 billion in planned investment this year, the loan, under negotiation since early 2015, gives the company enough cash for Petrobras to pay nearly all of its more than $30 billion of capital and debt needs.
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