Brazil Treasury Studies Possible Overseas Bond Issue In 1H
BRASILIA (Dow Jones)–Brazil’s government is studying a possible overseas bond issue to be launched before the end of the first half of this year, Treasury Secretary Arno Augustin said Wednesday.
“It could be in the first half,” Augustin said at a news conference. “Recent issues have been successful. Rates have been lower than paid by some other countries with better sovereign ratings than Brazil.”
In January, Brazil issued $1.025 billion in global bonds due in 2019. The bonds were sold at a yield of 6.127%.
Augustin said Brazil’s government had “no special need to issue bonds at the present time.” He said the government was well stocked with dollars to meet debt service costs. Foreign reserves are over $200 billion.
Augustin said Brazil would only return to overseas markets in order to take advantage of low interest rates.
In an interview with Dow Jones Newswires on April 8, Deputy Treasury Secretary Paulo Valle said the government was studying the possibility of reopening the Global 2019 bond in order to take advantage of favorable market conditions.
-By Gerald Jeffris and Tom Murphy, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com