Treasury to issue foreign debt bonds in U.S. dollars

Treasury debt bonds dollars
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The Brazilian Treasury announced that the issuance of Brazilian foreign debt bonds will be coordinated by financial institutions abroad. Operations will be set for two terms, ending in 2031 and 2050, led by banks Bradesco BBI, Goldman Sachs, and HSBC.

“The objective of the operation is to continue the Treasury’s strategy of promoting the liquidity of the sovereign interest curve in dollars on the foreign market, providing a reference for the corporate sector, and anticipating financing of maturities in foreign currency,” reads the statement.

The rise of benchmark interest rates is among the factors that has attracted foreign investors to Brazilian bonds, as well as being considered an opportunity for the government to raise funds amid the Covid-19 crisis.

Among the advantages for foreign investors with this type of operation are the deadlines for receiving interest, which can be semiannual, unlike other investments where interest is paid only on redemption. In addition, rates are usually lower on foreign debt bonds.