Brasília – The Brazilian National Treasury has announced this Wednesday (24th) that US$ 3.25 billion worth of new bonds of the Republic, announced last Tuesday and dubbed Global 2025, have been issued. Of those, US$ 3.2 billion have been sold on the European and United States markets, and US$ 50 billion were raised in Asia. The government will pay investors an interest rate of 4.3% – aka rate of return. It is the highest rate for bond operations since 2010. On that occasion, the rate was 4.5%.
According to the National Treasury, the issue was led by the banks Bradesco, Deutsche Bank and HSBC, and the Global 2025 bonds were placed on sale for de 99.521% of their face value, i.e. at a slight discount.
Out of the total bonds issued, US$ 1.55 billion will be paid in cash on settlement, and the remaining US$ 1.7 billion will be paid for in old bonds. The Treasury has also announced that US$ 500 million worth of old bonds have been repurchased, and will be settled by payment in cash. The settlement date is November 1st, and the interest will be paid on January 7 and July 7 each year.
*With information from the ANBA Newsroom. Translated by Gabriel Pomerancblum
