Would you lend money to a group of people involved convicted fraudulent activity whose people were, among other issues, accused of altering financial statements to cover up corruption? Would you also lend these same people money for 100 years into the future? This is what Petrobras (PBR), one of the most indebted firms in the world with $133 billion in outstanding obligations, is asking investors for: $2.5 billion over a 100 year term.

Petrabras is Brazil’s government-controlled oil company that has had its fair share of scandal as of late. But what the firm does have is access to oil and other energy related property, and the company, in dire need of immediate financial assistance, wants to borrow money now and pay it back over 100 years, according to a preliminary Securities and Exchange filing by the firm. The document did not state an interest rate. Mexico’s $2.67 billion of dollar-denominated notes due 2110 yield 5.58 percent, a Bloomberg report noted.

Will modern society even be using oil in 2115?

While it is unclear if oil will be used to power cars in 100 years – or even if the value of Petrobras will hold up during this period of time – but the company wants to borrow money until 2115. With the help of its joint bookrunners, Deutsche Bank AG and JPMorgan Chase & Co., the securities will be available through an offering on the New York Stock Exchange.

Just a few months ago, Brazilian Police were targeting Brazilian political officials on corruption charges, as noted in ValueWalk. The firm further had difficulty locating an accounting firm that would sign off on its questioned accounting. Recent Bridgewater Associates analysis noted that a Petrobras default was looming and it was in fact a systemic risk to Brazil itself, which could potentially send the currency tumbling in value.

Petrobras risk factors: currency and fraud among them

In the firm’s initial filing, it noted an important risk factor – that the payments might not be made in U.S. dollars. “The government may institute a restrictive exchange control policy in the future. Any restrictive exchange control policy could prevent or restrict our access to U.S. dollars, and consequently our ability to meet our U.S. dollar obligations under the guaranty and could also have a material adverse effect on our business, financial condition and results of operations,” the prospectus stated.

Another could be fraud itself, as the risk factors observed that if a legal consideration of how these new bond holders could lose an important iien: “A finding that Petrobras is subject to U.S. bankruptcy laws and that any of the guaranty executed by it was a fraudulent conveyance could result in the relevant PGF holders losing their legal claim against Petrobras.”

So forget that 100 years from now a new governmental system is likely to be ruling the world and planet earth may have moved away from depleted fossil fuels.  Suspend disbelief.

To read the full prospectus, find it here.