Brasília – The Brazilian National Treasury completed its purchasing operation for Brazilian debt bonds denominated in reals (the country’s currency). In the operation carried out last Wednesday (18th), led by the HSBC Securities (USA) and Goldman, Sachs & Co banks, 1.673 billion reals worth of bonds were repurchased (US$ 896.6 million).
The operation, announced on April 17th, involved the sale of Brazilian bonds adjusted for the real’s variation and maturing in 2024. Bonds totalling 3 billion reals were sold to American and European investors at a return rate of 8.6% a year, the lowest rates ever for this type of bond. The operation’s success shows greater confidence in the Brazilian economic policy. After the closing of these markets, another US$ 150 million were sold in the Asian market.
The National Treasury secretary Arno Augustin stated, among other things, that the issuance of bonds denominated in Brazilian real aids the government’s exchange rate policy and helps keep the currency within the levels desired by the policymaking team. This is so because the good situation attracts foreign investors to bonds adjusted for the variation of the Brazilian real.
Arno also said the operation shows Brazil has garnered international recognition in the last few years for its economic foundations, which is reflected in the increasingly better grades of foreign rating agencies.
*Translated by Gabriel Pomerancblum
