Brazil plans Petrobras debt aid

12 Decemberr 2014, News Wires – Brazilian oil giant Petrobras is on the verge of receiving help with debt financing from the state as the government lines up an asset-backed securities offering, according to Reuters.

Mines & Energy Minister Edison Lobao said on Thursday that the deal, essentially to assist the Rio de Janeiro-based player fund its huge investment plan, should be formally announced by the end of the week, the news wire reports part of the deal, the 9 billion reais ($3.4 billion) that state-run power company Electrobras owes Petrobras will be put up as collateral, with the government guaranteeing two-thirds of the deal and Electrobras the other third, Reuters reported.

The Brazilian economy is heavily reliant on the likes of Petrobras and its monster pre-salt offshore developments, where the state oil company has committed to investing heavily.

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