Brasília – The Brazilian National Treasury has announced its first government bond issue abroad in 2012. Foreign investors will be offered what are known as Republic bonds, denominated in dollars and maturing in January 2021. The last bond issue with the same maturity date took place in July 2011, according to the Ministry of Finance. In November, Brazil issued bonds on the foreign market, but those matured in 2041.
The issue will be led by banks BNP Paribas and Itaú BBA. The bonds will be issued on the United States and European markets. Depending on how successful the operation is, the National Treasury may offer the bonds in Asia as well, once the market opens.
Thus, results will be disclosed at the end of the United States and Europe issue, and the total result will only be announced once an eventual Asian market offer has been completed, the Ministry of Finance informed.
The National Treasury secretary, Arno Augustin, has claimed repeatedly that government bond issues abroad signal to foreign investors how solid Brazilian public finance is. As a result, Brazil has carried out qualitative issues lately, aiming to set benchmark rates for government and company bonds on the international market.
*Translated by Gabriel Pomerancblum
