Brazil’s Petrobras secures loans to cover 2015 operations, investments

(McGraw Hill Financial, Rio de Janeiro, 20 April 2015) Brazilian state-run oil company Petrobras approved a series of financial agreements with local and international banks that will meet its financing needs in 2015, the company said Friday. In a filing with local stock regulators, Petrobras said that the financing deals will provide the company with access to about $6.2 billion. The agreement follows a $3.5 billion financing contract Petrobras reached with China Development Bank on April 1. Petrobras was cut off from global capital markets typically used to fund operations and investments last year and has been under a financial squeeze after federal prosecutors uncovered an alleged bribery and kickback scheme involving former company executives, local politicians, many of Brazil's largest construction and engineering firms, affecting UK, Dutch and perhaps other ECA financing.