Brazil issues US$3,25 billion in bonds in the international market and plans to repurchase US$1,7 billion.
In a historic operation, the Brazilian government obtains a competitive rate of return and reinforces the confidence of international investors.
247 - Brazil's National Treasury announced on Wednesday (3) that it managed to raise US$3,25 billion in a sovereign bond issue, in an operation that included the issuance of bonds with maturities of five and 30 years. The transaction, which took place on Tuesday (2), also allowed the repurchase of bonds with shorter maturities. According to the statement, the operation aimed not only to raise funds, but also to give the government greater flexibility in managing external public debt.
The fundraising was divided into two main bonds. The first, maturing in 2030, raised US$750 million and was issued with an annual return rate of 5,2%. The second bond, maturing in 2056, raised US$2,5 billion, offering a return of 7,5% per year. The operation also involved the repurchase of bonds maturing between 2037 and 2054, totaling approximately US$1,746 billion. In addition, investors had the option to exchange their existing bonds for bonds maturing in 2056.
According to the National Treasury, the bond issuance operation performed exceptionally well, with demand exceeding the issued value by 2,6 times. At its peak, the order book registered US$4,5 billion. The purchase was predominantly made by foreign investors, with 90% of participants coming from Europe and North America.
The government highlighted that the operation represented a significant milestone for the Brazilian external debt market. "The bonds were issued with rates close to those of investment-grade countries and attracted significant investor interest," stated the Treasury. The ministry also emphasized that the prices obtained for the 5- and 30-year bonds represented the lowest risk premiums since 2014, with the operation reaffirming investor confidence in Brazil's economic policy. "The strong demand reflects market confidence in Brazilian credit and reopens the market for corporate issuances," the government declared.
This was the third foreign exchange operation carried out by the National Treasury in 2025, totaling US$8,5 billion so far. The first issuance occurred in February, followed by another in June, which together raised US$5,25 billion. The Secretary of the National Treasury, Rogério Ceron, had already anticipated that Brazil would carry out new issuances in 2025, based on the success of previous operations.
