Brazil’s Petrobras Redeems US$1.08 Billion in Global Bonds Early

Petrobras announced on Thursday that it will redeem US$1.08 billion of its own global bonds ahead of their scheduled maturity date. The company's wholly-owned subsidiary, Petrobras Global Finance, has sent redemption notices to bondholders for the 5.999 percent Global Notes maturing in 2028, with a principal amount of US$1,080,945,000 scheduled for repayment on 22 September 2026.

This move, described as liability management, removes a nearly 6 percent fixed coupon from Petrobras' balance sheet two years before maturity. The company has made three early bond redemptions in under a year, including a redemption of 8.750 percent notes due in 2026 in December and another buyback in May. Meanwhile, Seatrium, Singapore's offshore production giant, christened two floating production, storage, and offloading vessels, P-80 and P-82, at its Tuas Boulevard yard.

These vessels, designed to produce 225,000 barrels of oil per day each, will add 450,000 barrels per day of capacity to the Búzios field in Brazil's pre-salt Santos Basin. The Búzios field is Brazil's largest in terms of reserves and production, already surpassing 1.2 million barrels per day. The field is scheduled to receive production from the new vessels starting next year.

Additionally, Petrobras and petrochemical producer Braskem agreed to raise Braskem's trade credit line with Petrobras from R$350 million (US$68 million) to R$2.35 billion (US$456 million), effective until December 2026. This credit line finances Braskem's raw material purchases from Petrobras, keeping feedstock flow steady during Braskem's debt restructure.

The news was well-received by investors, with Braskem shares rising more than 14 percent on the São Paulo stock exchange following the announcement. Collectively, these moves illustrate Petrobras using its strong cash position to cut debt early, expand production capacity, and maintain support for its key industrial partner.