Brazil May Consider Selling 100-Year Debt After Mexico, Augustin Says
Brazil may consider selling 100-year bonds after Mexico succeeded in offering the longest-maturity debt issued by a Latin American country, Treasury Secretary Arno Augustin said.
“As Brazil improves, this possibility, that was hard before, is starting to be considered,” Augustin said in Brasilia. “A sale with this profile can be assessed in the future.”
Mexico sold $1 billion of bonds due in 100 years on Oct. 5, taking advantage of global demand for higher-yielding debt amid record-low interest rates in the U.S. and Europe. In Brazil, Finance Minister Guido Mantega doubled a tax foreigners must pay to buy domestic debt in a bid to temper dollar inflows.
There may be investor demand for 100-year bonds from Brazil and other countries, said Guillermo Osses, who helps oversee $50 billion in emerging-market assets at Pacific Investment Management Co.
“It wouldn’t be surprising, given how well this bond has performed in the market,” Osses, who’s based in Newport Beach, California, said in an Oct. 6 telephone interview. “Brazil, for example, could fit very well that type of description.”
Brazil may also sell real-denominated foreign debt before the end of the year, Augustin said.
To contact the reporter on this story: Arnaldo Galvao in Brasilia at agalvao1@bloomberg.net
To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net
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