Case Study

The October 2009 Petrobras bond issue (A)

10 pages
February 2010
Reference: IMD-1-0285

The Petrobras case explores the debt financing decisions of one of the largest oil companies in the world. The task is to decide on debt issues that are needed to finance growth investments of Petrobras.

Learning Objective

The case gives the opportunity to price a corporate bond issue, and understand the mechanics behind bond markets. Some of the topics that can be covered are: expected costs (percentage yield) that Petrobras will incur, ratings and spreads, financial crisis, coupon rates and the value of the bonds, underwriter discount, all-in-cost of the bond.

Keywords
Capital Market, Bond Valuation, Emerging Market, Rating
Settings
South America, Brazil
Petrobras, Materials, Oil and Gas
2009
Type
Published Sources
Copyright
© 2010
Available Languages
English
Related material
Teaching note
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