Brazil Sells $750 Million of Bonds Abroad to Yield 2.75 PercentVeronica Navarro Espinosa and Boris Korby
Brazil’s government is taking advantage of falling yields to sell more of its dollar bonds due in 2023 in the country’s first issue abroad in eight months.
Brazil sold $750 million of bonds after yields fell 0.36 percentage point in the past two months, the most since they were first issued in September, the Treasury said today in an e-mailed statement. Barclays Plc and Citigroup Inc. arranged the sale.
Latin America’s biggest economy issued the bonds to yield 2.75 percent, according to the Treasury. There were $1.35 billion of 2023 notes outstanding before today’s sale.
“They’re being opportunistic,” said Michael Roche, an emerging-market fixed-income strategist at broker-dealer Seaport Group. “You couldn’t be faulted raising long-term dollar debt at these kind of levels.”
The yield on the notes climbed six basis points, or 0.06 percentage point, to 2.74 percent at 4:21 p.m. in New York, according to data compiled by Bloomberg. The yield has declined from 3.28 percent on March 20, the highest level since the bonds were sold in September.
Brazil’s economic growth will accelerate to 3.1 percent this year, according to the median estimate of 30 economists surveyed by Bloomberg. Growth slipped to 0.9 percent in 2012 from 2.7 percent in 2011, capping the slowest two years of expansion since 1999, according to data compiled by Bloomberg.
The country is rated BBB by Standard & Poor’s, the second-lowest level of investment grade, in line with Mexico, South Africa and Russia.