Record Offerings Hinder Effort to Stem Real Gain: Brazil Credit

Record overseas dollar bond offerings from Brazilian companies are hurting the government’s effort to stem inflows that sparked the real’s 39 percent rally in the past two years.

Sales from Itau Unibanco Holding SA, Latin America’s biggest bank by market value, and state-run oil company Petroleo Brasileiro SA are pushing January issuance to $10.4 billion, the busiest month on record, according to data compiled by Bloomberg. International debt sales may eclipse last year’s record $36.5 billion, according to Banco BTG Pactual SA. Brazilian corporate bonds yield 6.2 percent, or more than 1 percentage point above U.S. corporate debt.