fwp
Filed pursuant to Rule 433
Registration Statements Nos. 333-163665 and 333-163665-01
Relating to Preliminary Prospectus Supplement dated
December 1, 2011
Pricing Term Sheet
A preliminary prospectus supplement of Petrobras International Finance Company accompanies this free writing prospectus and is available from the SEC’s website at www.sec.gov.
     
Issuer:
  Petrobras International Finance Company
 
    
Guarantor:
  Unconditionally and irrevocably guaranteed by Petróleo Brasileiro S.A. — Petrobras
 
    
Form:
  Senior Unsecured Notes
 
    
Offering:
  SEC-Registered
 
    
Currency:
  Euros (“€”)
 
    
Principal Amount:
   €1,250,000,000
 
    
Maturity:
  March 7, 2018
 
    
Coupon Rate:
   4.875%
 
    
Interest Basis:
  Payable annually on March 7
 
    
Day Count:
  Actual/Actual
 
    
First Interest Payment Date:
  March 7, 2012 (short first coupon)
 
    
Gross Proceeds:
   €1,237,762,500
 
    
Issue Price:
   99.021% (MS + 285 bps)
 
    
Government Benchmark:
  DBR 4.000% due January 4, 2018
 
    
Benchmark Price:
   115.258%
 
    
Benchmark Yield:
   1.367%
 
    
Spread to Benchmark:
   369.9bps
 
    
Yield to Investors:
   5.066%
 
    
Make-Whole Call Spread:
   +55bps
 
    
Pricing Date:
  December 1, 2011

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Settlement Date:
  December 9, 2011 (T+6)
 
    
Listing:
  Application has been made to admit the Notes to listing on the official list of the Luxembourg Stock Exchange and trading on the Euro MTF market
 
    
Denominations:
   €100,000 and integral multiples of €1,000 in excess thereof
 
    
Common Code:
   071697924
 
    
ISIN:
   XS0716979249
 
    
Joint Bookrunners:
  Banco Bradesco BBI S.A.
 
  Banco Santander, S.A.
 
  BB Securities Ltd.
 
  Crédit Agricole Corporate and Investment Bank
 
  Deutsche Bank AG, London Branch
 
  HSBC Securities (USA) Inc.
 
    
Co-Managers:
  Banca IMI S.p.A.
Mitsubishi UFJ Securities International plc
The expenses of the offering, excluding the underwriting discount, are estimated to be U.S.$500,000 and will be borne by PifCo.
The underwriters propose to offer the notes initially at the public offering price set forth on the cover page of the prospectus supplement and to dealers at that price less a selling concession not in excess of 0.25% of the principal amount of the notes. After the initial public offering of the notes, the public offering price and concession and discount to dealers may be changed.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus or any prospectus supplement for this offering if you request it by calling Banco Bradesco BBI S.A. collect at 1-212-888-9145, Banco Santander, S.A. collect at 44-20-7756-4380, BB Securities Ltd. collect at 44-20-7367-5800, Crédit Agricole Corporate and Investment Bank toll-free at 1-866-807-6030, Deutsche Bank AG, London Branch toll-free at 1-800-503-4611 and HSBC Securities (USA) Inc. toll-free at 1-866-811-8049.

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