Brazil raises $2.5 billion with 6.75% yield in global bond sale with 10-year dollar issuance

Reuters

18-02-2025

BRASILIA, Feb 18 (Reuters) - Brazil's Treasury on Tuesday raised $2.5 billion in a new 10-year dollar-denominated sovereign bond, with a 6.75% yield, it said in a statement.
The so-called Global 2035 aims to further the Treasury's strategy of enhancing liquidity in the country's external yield curve, the government said.
A source familiar with the matter, speaking anonymously since details are still private, said the initial price was set at around 7.05%.
The Treasury said Bradesco, JP Morgan and Morgan Stanley were leading the transaction.
"The issuance reinforces the important role of external debt in extending maturities, diversifying benchmarks and broadening the investor base," the Treasury said.
The operation comes as Brazil's five-year Credit Default Swap (CDS) has improved significantly, dropping more than 20% year-to-date.
This follows a sharp deterioration in December, when fiscal concerns and global market uncertainty after the election of U.S. President Donald Trump sparked a sell-off in Brazilian assets.
Recently, central bank chief Gabriel Galipolo noted that asset markets have risen on relief that tariffs threatened by Trump have not been immediately imposed, after initial widespread expectations that his policies would be inflationary.
Latin America's largest economy last tapped international markets in June last year, raising $2 billion in its second sustainable bond issuance.
In the release of its 2025 financing plan earlier this month, the Brazilian Treasury said it expected to continue issuing conventional and sustainable sovereign bonds on the international market this year.