Deals

Jul 1, 2004

Brazil Pays Up
After a five-month absence from the markets, Brazil issued a $750 million five-year floating-rate bond in June, just nine days ahead of the Federal Reserve's Open Market Committee June 30 meeting, which investors widely expected would raise short-term US interest rates. Goldman Sachs and Merrill Lynch led the deal, priced at 575 basis points over Libor. Brazil had little choice but to sell medium-term floating rate debt, since investors shunned emerging market debt ahead of the Fed's June meeting. This was only Brazil's second issue of the year. The country issued a $1.5 billion, 30-year bond in January before borrowing costs surged.This is the first time in a decade that Brazil has issued a floater.

Brazil has a heavy amortization schedule this year. It had to pay down $822 million in foreign debt in June alone. The government has a further $5.4 billion in...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

Upcoming Events

Poll

Which area will be most profitable for investment banks in LatAm in 2016?

Vote    




Popular Searches