Odebrecht seeks credit to pay off debt

Wednesday, February 14, 2018

Embattled Brazilian construction conglomerate Odebrecht is planning to obtain a credit line worth 3.5bn reais (US$1.06bn) to cover its short-term debt obligations and to finance existing projects.

The conglomerate is in talks with banks to arrange the loan, reported financial newspaper Valor Economico, which did not unveil the source of this information.

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Odebrecht is planning to use its shares in petrochemical company Braskem as guarantee to obtain the credit, said the report. It controls Braskem jointly with state oil company Petrobras.

Odebrecht is deeply involved in corruption uncovered by the Lava Jato probe, regarding wrongdoings involving construction contracts as well as Petrobras. The construction conglomerate is thus dealing with falling revenues and is selling various assets to service its debts.

The most recent figure of Odebrecht debt dates from early 2017, when its gross debt totaled 93bn reais, said the report.