Bank of China contributes to $4.35 billion syndicated revolving credit facility with Petrobras Global Trading B.V. (PGT BV) in March 2018

On March 7, 2018, Petrobras Global Trading B.V. (PGT BV) — a state-owned Braziilian oil company — signed a $4.35 billion syndicated revolving credit facility with 17 banks. The facility carried a 5-year maturity and an estimated interest rate of 6-month LIBOR plus a 1.5% margin. The loan’s final maturity date is February 7, 2023. The borrower was expected to use the proceeds from the facility to settle existing debts. The participants in the lending syndicate included BNP Paribas, Citibank, Credit Agricole, Mizuho, The Bank of Tokyo-Mitsubishi UFJ, Bank of America, Bank of China, HSBC Bank, JPMorgan Chase Bank, Morgan Stanley, Banco Santander Brasil, The Bank of Nova Scotia, Deutsche Bank, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, ING, and Commerzbank. MUFG was senior mandated lead arranger, Bank of America, Bank of China, HSBC, JP Morgan, Morgan Stanley, Banco Santander and the Bank of Nova Scotia were mandated lead arrangers, Deutsche Bank and Standard Chartered lead managers; and Sumitomo Mitsui Banking Corp, ING and Commerzbank were participants. Petrobras’ filings within the SEC provide some evidence of drawdowns and repayments under the RCF agreement.

Additional details

1. Bank of China’s contribution to the syndicated loan is unknown. For the time being, AidData assumes equal contributions ($255,882,352) across the 17 members of the syndicate. 2. Under the terms of the revolving credit facility agreement, Petrobras is charged an interest rate of 6-month LIBOR plus a 1.7% margin if the rating of the company at the time of drawing is below investment grade, and an interest rate of 6-month LIBOR plus a 1.3% margin if the company has an investment grade rating at the time of drawing. AidData has estimated all-in interest rate by adding 1.5% to the 6-month LIBOR rate in March 2018 (2.345%). 3. The RCF agreement was extended (with Bank of China and ICBC participation) in 2021. 4. There is evidence of drawdowns and repayments under the RCF agreement (see http://pdf.secdatabase.com/1006/0001292814-21-000614.pdf). However, the exact timing and size of these drawdowns are unknown. 5. The China-Latin America Commercial Loans Tracker, which is produced by the Inter-American Dialogue, does not capture this loan.

Number of official sources

3

Number of total sources

9