Brazil Floats Dollar and Euro Issues
Shortly after Moody's Investors Service upgraded Brazil's foreign currency rating outlook to positive from stable in March, the country issued $1.25 billion-worth of six-year bonds. The Central Bank of Brazil had planned to raise just $750 million, but investor demand and several sizable orders allowed it to upsize the deal to $1.25 billion. The bonds priced at 99.004 with a coupon of 11.5% to yield 11.736%. Goldman Sachs and Merrill Lynch led the deal. The spread at launch was 738 basis points over five-year 3.5% US Treasurys. Favorable conditions, including Moody's upgrade and a cut in the Selic benchmark interest rate, prompted Brazil to issue. Moody's rates Brazil B1. Moody's reports that the Brazilian authorities successfully dealt with domestic shocks such as power shortages and the crisis in Argentina. In January, Brazil sold $1.25 billion-worth of 10-year bonds with an 11% coupon led by JP...
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