NEW YORK (TheStreet) -- Petrobras (PBR) shares are rising today, up 0.48% to $8.39, in early market trading on Monday, after the Brazilian state run oil company announced today that it is selling a rare 100 year bond.
The company set initial price thoughts of 8.85% for the first U.S. dollar denominated bond it has issued since March 2014, according to Reuters.
Deutsche Bank (DB) and JPMorgan (JPM) will act as joint bookrunners for the sale.
Century bonds are often issued to show company strength, a tactic that would be helpful to the state-owned oil company which has been rocked by an ongoing corruption scandal and investigation in recent months.
Separately, the company is considering selling some of its assets in the Gulf of Mexico as it looks to streamline as part of a divestment plan, according to local Brazilian new service Folha de S.Paulo.
The company has previously stated plans to cut as much as $13.7 billion in assets this year.
TheStreet Ratings team rates PETROLEO BRASILEIRO SA- PETR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROLEO BRASILEIRO SA- PETR (PBR) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."