Soverign Report

Soverign Report


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'

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