Brazil Raises Half a Billion Dollars Selling Global Bonds

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Brazilian real Brazil's foreign exchange reserves, which totaled US$ 239.271 billion as of the 14th this month, are going to receive a boost starting on the 22nd. The National Treasury has raised US$ 525 million through sales of external debt bonds known as Global 2019 N.

The papers were sold with the lowest interest rate in history for bonds denominated in dollar. This means that the perception of foreign investors regarding Brazil has improved significantly.

The reopening of the operation was announced Tuesday and the operation was concluded Wednesday, after the closing of the Asian market. In total, US$ 500 million were traded in the European and United States markets, and US$ 25 million in the Asian market.

The annual interest rate was 5.875%, 1.139% higher than United States Treasury bonds maturing in November 2019. The bonds were sold for 108.204% of their face value, resulting in a rate of return of 4.75% a year for investors.

According to the Treasury, the issuance was led by banks Goldman, Sachs and Morgan Stanley, and the funds will become part of the Brazilian foreign exchange reserves on the 22nd this month.

The interest coupons will be paid to investors on January 15th and July 15th each year, up until the date of maturation, on January 15th, 2019.

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