This excerpt taken from the PBR 20-F filed May 22, 2009.
Long-Term Indebtedness Incurred After December 31, 2008
On February 11, 2009, PifCo issued Global Notes in the total amount of U.S.$1,500 million in the international capital market, due March 15, 2019. The Global Notes bear interest at the rate of 7.875% per year, payable semiannually beginning on September 15, 2009. The funds raised will be used for general corporate purposes, including financing the 2009-2013 Business Plan. The offering had an estimated cost of U.S.$6 million, a discount of U.S.$26 million and an effective interest rate of 8.187% per year. The Global Notes constitute general senior unsecured and unsubordinated obligations of PifCo and are unconditional and irrevocably guaranteed by Petrobras.
Between March 24, 2009, and May 20, 2009, PifCo borrowed an aggregate amount of U.S.$4,000 million under lines of credit with Banco Santander, S.A., Citibank, N.A., HSBC Bank USA, N.A. and JPMorgan Chase Bank, N.A. The loans will mature in 2011 and bear interest at an initial rate of Libor plus spreads reflecting prevailing rates at the time of incurrence. The proceeds will be used
by PifCo to purchase oil on the international market for sale to Petrobras and to purchase our oil exports.