Petrobras pursuant to the Material Fact dated July 26, 2017 and the press release dated August 16, 2017, Petrobras hereby informs that in August 25, 2017, the settlement of the 5th (fifth) issue of simple non-convertible unsecured debentures ("Issue" and "Debentures") in the total amount of four billion, nine hundred and eighty-eight million, eight hundred and nineteen thousand reais (R$ 4,988,819,000.00) was concluded.

Of the total amount, one billion, three hundred and ninety million, eight hundred and ninety-two thousand reais (R$ 1,390,892,000.00) have been allocated in the series of incentive Debentures, which are exempt from income tax for individuals, such resources being allocated to the investment project in the infrastructure area classified as a priority under Ordinance No. 457 of September 29, 2015 of the Ministry of Mines and Energy.

The amount allocated to non-incentive Debentures was three billion, five hundred and ninety-seven million, nine hundred and twenty-seven thousand reais (R$ 3,597,927,000.00), which will be used in the ordinary course of business of Petrobras, especially for the prepayment of higher cost and/or shorter term debts.

Interest from investors surpassed twice the final amount, especially the order book, which reached an amount of approximately R$ 10.3 billion. During the bookbuilding procedure, the demand allowed the reduction of the rate of the series of Incentive Debentures maturing in 2022, which was priced under Treasury IPCA 2022, and the rate of the series indexed to the CDI with maturity in 2022, which was priced at 106.75% of CDI, below the initial rate of 110.25% of CDI.