Brazil Treasury Gets Half a Billion Dollars in the US and Europe

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Goldbars Information from the Brazilian Treasury reveals that apart from the US$ 500 million in bills issued on the European and North American markets, another US$ 25 million were traded on the Asian market.

Wednesday, July 29, the Treasury started selling Brazilian Treasury Bills, the Global 2037, once again. They mature on January 20, 2037.

The bills were issued considering interest rates of 7.125% a year and with spread of 195 points over the Treasury (US Bills) maturing in May 2037 and the issue was in the hands of Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.

The bills were traded at 108.63% of their face value, resulting in investor return of 6.45% a year. The rate is the lowest since Brazil started issuing bills for the same value and means that investors are more confident in the fundaments of the economy of Brazil

Liquidation should take place on August 5th, 2009 and payments will be made on the 20th of January and 20th of July of each year, up to the maturity on January 20th, 2037.

According to Finance minister Guido Mantega, the demand for the papers reached US$ 7 billion and was 14 times oversubscribed. The last time the government of Brazil issued papers mature in 2037 was in January 2007.

ABr

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