Brazil’s National Treasury announced today (Nov 4) efforts to raise capital abroad. In a note, officials reported a new bond will be issued, an existing bond will be re-issued, in addition to the re-purchase of Brazilian bonds in dollars.
A 30-year bond due on January 14, 2050, will be issued, dubbed Global 2050. Furthermore, an existing ten-year bond, Global 2029, will be re-issued, due on May 30, 2029. At the same time, the following seven bonds will be re-bought:
| Bond | Due Date (DD/MM/YYYY) |
Stock in Market (in US$ millions) |
| Global 2027 | 15/05/2027 | 823 |
| Global 2030 | 06/03/2030 | 240 |
| Global 2034 | 20/01/2034 | 1,404 |
| Global 2037 | 20/01/2037 | 1,825 |
| Global 2041 | 07/01/2041 | 2,366 |
| Global 2045 | 27/01/2045 | 3,550 |
| Global 2047 | 21/02/2047 | 3 |
By releasing foreign debt bonds, the government borrows money from international investors and commits to return the funds with interest.
The resources raised overseas are brought to the country’s international reserves. Issuing bonds overseas, the Treasury reported, does not aim to strengthen the country’s funds but to provide a gauge for Brazilian firms planning to raise funds in the international financial market.
The operation will be led by banks BNP Paribas, Citibank, and Goldman Sachs & Co. The bonds will be issued in the global market.
