Brazil Gets $1.5 billion as C-Bond
Brazil sold $1.5 billion in 30-year bonds, priced to yield
8.75%. Deutsche Bank and Citigroup managed the sale. This was
the sovereign's first 30-year bond since 2000. Brazil's central
bank last year said it plans to raise $4 billion in
international bond sales this year. In 2003, it issued four
bonds for a total of $4.53 billion, excluding exchange offers
to retire Brady bonds. Markets are bracing for a possible offer
to retire the C-bond, the country's highly liquid Brady bond,
after it broke par in January for the first time since its
launch in April 1994. The government issued $6.54 billion-worth
of the 8% bonds that mature in 2014. According to independent
research firm CreditSights, Brazil could save as much as $1.03
billion on interest payments by retiring $4 billion in C bonds
and issuing cheaper, uncollateralized debt. Brazil has the
right to call them at par by April...
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