(Bloomberg) — Brazil is tapping international credit markets, offering new debt for the first time in more than six months amid a broad rally in the country’s assets early in 2025.
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Latin America’s largest economy is selling $2.5 billion in bonds due in 2035, which are likely to yield around 6.75%, down from initial price talks of 7.05%, according to people familiar with the matter, who asked not to be identified discussing a private matter. Proceeds will be used to repay outstanding public debt.
“The new issue is being priced on the screws, which makes it a good deal for the issuer,” said Anders Faergemann, a senior money manager at Pinebridge Investments in London.
Bradesco BBI SA, JPMorgan Chase & Co and Morgan Stanley are handling the new deal, according to the prospectus. It’s expected to price on Tuesday.
Brazil Bounce
Brazilian assets have rebounded from a hard-and-fast rout seen at the end of last year which was fueled by mounting concern over the country’s debt trajectory. The currency, which slumped more than 21% versus the dollar in 2024, is up about 8% this year, one of the best in emerging markets. Stocks climbed 7% even as the central bank continues to hike interest rates.
Brazil last sold dollar bonds in June of last year, when it offered $2 billion in sustainable notes. The country has about $6.7 billion in hard-currency bonds maturing this year, including $4.3 billion that were due Jan. 7, data compiled by Bloomberg show.
–With assistance from Leda Alvim.
(Updates with details on deal in headline and second paragraph.)
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