Brazil Taps International Debt Markets with New Bond Offering
Brazil has returned to international credit markets, issuing new debt for the first time since June 2024. This offering comes amid a rally in Brazilian assets throughout 2025.
Bond Details
The Latin American economic powerhouse is issuing $2.5 billion in bonds maturing in 2035. Initial price talks indicated a yield of around 7.05%, but it is now expected to settle at approximately 6.75%. Proceeds from the bond sale will be used to repay existing public debt.
Market Performance
Brazilian assets have experienced a significant rebound since the end of 2024, when concerns over the country's debt trajectory weighed heavily on the market. The Brazilian currency, the real, has surged by roughly 8% in 2025, making it one of the best-performing emerging market currencies. Brazilian stocks have also climbed by 7%, despite interest rate hikes by the central bank.
Deal Handling
Bradesco BBI SA, JPMorgan Chase & Co., and Morgan Stanley are managing the bond issuance, which is slated to close on Tuesday.
Historical Context
Brazil's last dollar bond offering occurred in June 2024, when it issued $2 billion in sustainable notes. The country has approximately $6.7 billion in hard-currency bonds maturing in 2025, including $4.3 billion that were due on January 7, 2025.