Brasília – The Brazilian National Treasury has once again issued foreign debt bonds denominated in dollars, maturing in January 2021. A statement published by the Ministry of Finance informs that the papers, known as Global 21, will be issued in the United States and European markets. Depending on the markets’ receptiveness, the operation may be extended to Asia. The last issuance of this type of bond, according to the Ministry of Finance, took place in April and totalled US$ 787 million.
The issuance of bonds abroad occurs whenever the country needs funds to roll over the debt or to set a reference for its bonds. Recently, the National Treasury secretary, Arno Augustin, informed that from the perspective of foreign debt renegotiation, the Brazilian situation is stable, because the roll-over value has decreased a lot, and the government has no pressing need for issuing bonds in order to negociate with foreign creditors.
On the other hand, explained Arno Augustin, the issuance of bonds may be of qualitative character, i.e., meant to strengthen the Treasury bonds’ existing foreign market reference. This positive reference may enable, for instance, Brazilian companies to obtain financing that is more in keeping with the country’s new economic reality, as it is now regarded much more optimistically because of how it faced the international financial crisis.
The government expects to announce the results once the issuance of bonds in the United States and European markets is over. The total result of the issuance will only be announced after an eventual offering on the Asian is through.
*Translated by Gabriel Pomerancblum
