Brazil Gets $1.5 billion as C-Bond Breaks Par
sold $1.5 billion in 30-year bonds, priced to yield 8.75%.
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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