While Waiting for Moody’s Upgrade Brazil Sells Bonds Overseas

Arno AugustinTaking advantage of the lowest borrowing costs since October 2007, the Brazilian government, in the coming weeks, plans to sell bonds in international markets, Brazil’s Treasury Secretary Arno Augustin said.

“We will have a positive benchmark for Brazilian companies,” Arno Augustin said Friday in Brasília. “This will mean a sale in the coming weeks because the market sees the country in a positive way when it comes to Brazilian bonds.”

Latin America’s largest economy is planning to tap international credit markets after the extra yield investors demand to own its debt rather than US Treasuries fell to a 2 1/2-year low of 1.72 percentage points on April 4, according to JPMorgan Chase & Co. data. The gap was at 1.81 percentage points Friday.

Brazil expects to have its debt rating increased from its Baa3 rank by Moody’s Investors Service and BBB- by Standard & Poor’s, Augustin said.

Latin American borrowers have sold US$ 22 billion of debt in international markets this year, more than doubling the 9.3 billion of issuance from the year-earlier period, according to data compiled by Bloomberg.

Brazil last sold international debt in September, issuing 1.3 billion of 5.625% bonds due in 2041.

Mercopress

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