Banco do Brasil expects debt deal before year’s end with Sete Brasil

Banco do Brasil’s CEO said on Monday the state-led bank expects to come to terms with Sete Brasil by year’s end on outstanding debts of the company which builds and leases out drill rigs, according to Reuters.

Bank CEO Alexandre Abreu also expects Sete Brasil’s other creditors to reach a deal on the debts of around $3.6bn.

His announcements comes as Banco do Brasil is looking to restart a loan programme for suppliers of Brazil’s scandal-plagued state oil firm Petrobras, which has been at the hub of a huge bribes-for-contracts corruption web that has implicated domestic and foreign construction and engineering firms, top politicians and several of its own executives.

Sete Brasil makes and charters out rigs for use in deepwater prospects offshore Brazil and has been closely associated with Petrobras.

It was founded in 2010 by eight Brazilian pension funds, banks and Petrobras, and was contracted to build 29 offshore drilling platforms for leasing to Petrobras.

Since the corruption scandal broke that number of rigs was scaled back drastically.


Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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