Brazil Pays Up
International investors responded tepidly at first to Brazil's
latest $1 billion eight-year global bond in April, led by
bookrunners JP Morgan Securities and Morgan Stanley. Brazilian
authorities have said they want to issue up to $5 billion in
bonds this year to cover the government's budget deficit and
need to place as much as possible ahead of the October
presidential elections. Brazil has issued four international
bonds this year at steadily rising yields. It started with a
$1.25 billion, 10-year issue that carried an 11% coupon led by
JP Morgan and Citigroup in January. Then came a $1.25 billion
six-year global bond with an 11.5% coupon led by Goldman Sachs
and Merrill Lynch in March, followed by a ?500 million
seven-year international issue with an 11.5% coupon led by
Dresdner Bank and ABN AMRO. The latest issue, which carried a
12% coupon, had an issue price of...
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