By Marcela Ayres
BRASILIA (Reuters) -Brazil’s Treasury on Tuesday made its third foreign debt sale of the year, marking the first time since 2014 that Latin America’s largest economy has conducted more than two external bond sales in a single year.
The country launched a new 30-year note and reopened an existing five-year benchmark, the Treasury said in a statement, lauding the transaction as “successful” and a sign of investor confidence in its economic management.
The operations were aimed at boosting liquidity in Brazil’s dollar yield curve abroad, providing benchmarks for corporate issuers, and pre-financing upcoming foreign currency debt maturities, it said.
The new 30-year benchmark had a yield of 7.5%, but the Treasury said it would disclose only on Wednesday the amount raised. News service IFR reported that the transaction reached $1 billion.
The reopening of the five-year sovereign bonds, meanwhile, totaled $750 million at a yield of 5.20%, the Treasury said.
“The success of the operation reopens the market, serving as a benchmark for corporate issuances, and reflects investor confidence in Brazil’s economic policy and credit,” its statement said.
“It reinforces the historic and strong integration between the Brazilian and U.S. markets in terms of public debt management,” the Treasury added.
The remarks come at a time when the South American country has faced 50% tariffs imposed by President Donald Trump on U.S. imports of several Brazilian goods.
Tuesday’s deal was led by Bank of America, Itau BBA and JPMorgan.
Brazil had already tapped global markets this year with a $2.5 billion sovereign bond sale in February and a $2.75 billion issue in June.
In July, Treasury Secretary Rogerio Ceron told Reuters the country had a “very favorable” risk spread and would “definitely” remain active in external markets in the second half.
Ceron said that Brazil has benefited from global asset reallocation tied to U.S. policy shifts, with its large share of local-currency debt and high real interest rates drawing strong capital inflows.
That has supported Brazil’s real, which is up more than 10% against the U.S. dollar this year, spurred corporate bond sales, boosted foreign participation in public debt, and supported equity market gains.
(Reporting by Marcela Ayres; Editing by Andrea Ricci, Gabriel Araujo and Muralikumar Anantharaman)
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