Petroleo Brasileiro SA Petrobras (NYSE:PBR) To Get Nearly $200 Million From Corruption Repayments


Petroleo Brasileiro SA Petrobras (NYSE:PBR) will get nearly 650 million reais, or $201 million in funds recovered from the nation’s largest-ever corruption probe, named as Car Wash. The sum, which will be formally offered at an event, will be the largest remuneration resulting from a corruption probe in Brazil’s history.

The buzz

Since 2015, Petroleo, or Petrobras as the firm is commonly referred, has recorded 800 million reais in recovered payment, and the latest payout will bring that sum to 1.45 billion reais. The Car Wash probe, which revolves around kickback compensation for Petrobras deals, has rocked Brazil’s business and political establishment, resulting in several arrests, that include tycoons who own some of the leading Brazilian firms.

In unrelated news, Petroleo Brasileiro reported that the company has finalized an agreement with China Development Bank for financing of $5 billion and a 10-year supply deal with Unipec Asia Company. As much as 50% of the loan, which is set to mature in 2027, will be paid this month and the remained in next month, when the firm will compensate the remaining $2.8 billion that it need to pay to the Chinese bank on a loan taken in 2009. The preferential supply deal for 100,000 boe/d to Unipec Asia will substitute another for 200,000 boe/d which was finalized in 2009 and will expire in 2019.

The deal as per the firm’s liabilities management plan. The lone deal also indicates that the firm has emerged from the risk to its credit rating led by the multibillion-dollar bribery and money laundering case.

In the last trading session, the stock price of Petrobras declined more than 2% to close the day at $9.65. The decline came at a share volume of 17.66 million compared to average share volume of 15.03 million. After the recent decline, the market cap of firm was noted at $37 billion.