Brasília – The Brazilian National Treasury disclosed today (28th) the final result of the reissuance of bonds of the Republic known as Global 2021, maturing on January 22nd, 2021. The trading of the foreign debt bonds totalled US$ 825 million, being US$ 750 million in the European and United States markets, and US$ 75 million in the Asian market.
The operation was coordinated by the Deutsche Bank and by Bofa Merrill Lynch, and co-led by BB Securities and Santander. The Treasury will pay 4.875% of interest every six months and the bonds have a spread of 150 basis points above United States Treasury bonds, maturing on May 15th, 2020.
The price offered was 102.707% of the bond’s value, resulting in a rate of return of 4.547% per year for investors – the lowest ever.
By means of foreign debt bond issuances, the government borrows money from international investors, with the commitment of returning the funds plus interest. Lower rates point to lower degrees of distrust from investors regarding Brazil’s ability to honour its debt.
financial settlement will take place on August 3rd, 2010 and the coupons will be paid on January 22nd and July 22nd of each year, up until the maturing on January 22nd, 2021.
*Translated by Gabriel Pomerancblum
