Brazil Taps International Credit Markets with Benchmark Bond Sale
Amid a surge in its assets, Brazil has announced its return to international credit markets. The country is issuing benchmark bonds maturing in 2035, with initial yield guidance around 7.05%, according to unnamed sources.
Purpose and Timing
Proceeds from the bond sale will be used to repay outstanding public debt. The deal is expected to be priced on Tuesday and is being arranged by Bradesco BBI SA, JPMorgan Chase & Co, and Morgan Stanley.
Market Context
Brazil's assets have witnessed a significant recovery since the end of 2024, driven by improved sentiment towards the country's debt trajectory. The Brazilian currency has gained approximately 8% this year, while stocks have climbed about 6.8%.
Recent Bond Issuance
Brazil's last dollar bond issuance was in June 2024, when it offered $2 billion in sustainable notes. The country currently has $6.7 billion in hard-currency bonds maturing in 2025, including $4.3 billion due on January 7.