Brazilian state owned oil & gas explorer Petrobras is planning to issue new bonds to buy back $3.5bn of its existing debt.
The company plans on buying back $576m of its outstanding bonds paying 8.375% due 2018 at a small premium.
Further, the company plans on issuing a waterfall tender to purchase up to $3bn of existing debt due next year.
The purchase offer expires on 14 June 2016.
Petrobras has about $13.2bn of debt maturing this year and c.$28.5bn due in the next two years.
Brazil’s state-controlled oil company Petrobras is seeking a $1bn loan from the Export-Import Bank of China earlier than originally planned, on surging debt service costs amid plunging oil prices.
The loan was originally planned for 2017, but rising debt service costs and falling revenues due to softer oil prices compelled the company to avail the loan earlier than planned.
The company is engaged in negotiations with the Chinese lender after signing a term sheet on Monday.
The proceeds from the loan would be utilised towards its equipment and service contracts from Chinese suppliers.
Previously, the company had secured a $10bn loan from China Development Bank Corp. as part of a deal to supply crude to the Asian country.
Brazil-based Petrobras received a $10bn loan from China Development Bank as part of a deal to supply oil to the country. The loan is the outcome of an accord signed between Brazil and China last year.
The amount of oil to be supplied as part of the contract was not disclosed. The move would provide the beleaguered Brazilian company with a lifeline which struggled with falling oil prices, a corruption scandal and c.$20bn in debt maturing by 2018.