Brasília – The Brazilian National Treasury raised USD 2.25 billion from international investors, increasing interest rates compared to previous issues. The money came from the issue of foreign debt bonds made this Tuesday (29), USD 1.5 billion maturing in September 2031 and USD 750 million maturing in January 2050.
The annual return rate for bonds maturing in 2031 is 3.875%. In the last time this type of bond was issued, in December last year, the annual return rate had been 3.45%. For the 30-year bonds (2050), the current rate was 4.925% a year. In the previous issue, in December, interest had been 4.5% a year. These are return rates for investors, which for Brazil is the interest to be paid.
Higher interest rates indicate more distrust of Brazil’s debt repayments by the investors. In times of financial crisis like the current one, international investors ask for higher interest rates to buy Brazilian bonds due to the risk. The recent upsurge in interest paid by Brazil to issue bonds is also related to United States bond rates and the recovery of the US economy.
Translated by Elúsio Brasileiro
