Brasília – The National Treasury has disclosed the final result of the reopening of foreign debt bonds denominated in real (Brazilian currency), known as bonds of the Republic, maturing in January 2018. According to the National Treasury, the total value of the operation, which began this Thursday (20th), was 1.1 billion reals (US$ 657.3 million), of which 1 billion reals (US$ 597.5 million) were raised on the European and North American markets, and 100 million reals (US$ 59.7 million) on the Asian market, where the operation was completed later due to the time zone difference.
The bonds were issued at an investor’s rate of return of 8.85% per year and the funds will become part of the country’s foreign reserves next Thursday, October 27. This trading of old foreign debt bonds for new ones is good for the National Treasury because the cost is lower than that of operations carried out in Brazil.
The coupon rate of the bonds will be 10.25% a year, and payment will take place on January 10 and July 10 each until the bonds mature. The issue of Brazilian bonds was led by the Deutsche Bank and Barclays banks, and co-led by BB Securities and Credit Suisse.
*Translated by Gabriel Pomerancblum
