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
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.