Brasília – The National Treasury received USD 3 billion from foreign investors for the smallest interest rates from the past seven years. The money came from issuing last Monday (4th) USD 2.5 billion in government bonds maturing in January 2050 and USD 500 million in government bonds maturing in May 2019.
The rate obtained by issuing 30-year bonds maturing in 2050 reached 4.914% per annum. This is the second smallest interest rate in history for this kind of bond, higher only than the one obtained in November 2011 issue. For the 10-year bonds maturing in 2029, the rate reached 3.809% per annum, also the second smallest in history, higher only than the one obtained by January 2012 issue.
Bond issues are tantamount to a loan taken by the government from international investors, to be repaid with interest. Lower interest rates indicate a smaller investor distrust that Brazil will able to pay the debt.
Translated by Guilherme Miranda
