Brasília – In the first operation of the kind in two years, the Brazilian Treasury sold R$ 3 billion (US$ 1.6 billion) in treasury notes on the international market. The papers, connected to the Brazilian currency and maturing in 2024, were sold to North American and European investors at rates of return of 8.60% a year, the lowest interest rate ever registered for this kind of paper.
The government borrows money from international investors by issuing treasury bonds and agrees to pay back the loans at specific interest rates. That means the country will return the funds in 12 years, at an agreed interest rate, of 8.60% a year.
Lower interest rates show greater investor confidence that Brazil will pay its debt. According to the National Treasury, the demand for Brazilian papers allowed for lower market interest. The demand, says the government of Brazil, was lower than the offer, but technicians did not disclose the exact value.
*Translated by Mark Ament
