Petrobras bondholders brace for more losses

New York

THE corruption scandal battering Petrobras has already cost bondholders US$4 billion. With the oil producer facing billions of dollars in writedowns, investors are bracing them-selves for even more pain.

Petroleo Brasileiro SA's US$41 billion of dollar-denominated debt has lost 10 per cent of its value since Nov 13, the day before the federal police said they found "strong evidence" that at least seven builders formed a cartel to win public contracts, including 59 billion reals (S$29 billion) in orders from the state-controlled oil company.