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Case Study

The October 2009 Petrobras bond issue (C)

By Nuno Fernandes

2 pages

February 2010

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Reference: IMD-1-0287

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

Available Languages

English

Related material

Teaching note

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This case study is part of a series

The October 2009 Petrobras bond issue (A)
The October 2009 Petrobras bond issue (B)
The October 2009 Petrobras bond issue (C)

This case study is part of a series

The October 2009 Petrobras bond issue (A)
The October 2009 Petrobras bond issue (B)
The October 2009 Petrobras bond issue (C)

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