Brazil Sells $2.25 Billion in Sustainable 2033 Bond, Reopens 2035 Issue

Overview

• The sale included $1.5 billion of the Global 2033 Sustainable bond at a 5.75% yield with a 5.5% coupon.
• The Treasury added $750 million to the Global 2035, lifting the outstanding amount to $4.5 billion.
• Investor orders reached about $6.7 billion, roughly three times the offer, from more than 150 buyers with 74% allocated to Europe and North America.
• Funds will be allocated under Brazil’s sovereign sustainable-bond framework to environmental and social outlays and to pre-finance or refinance external public-debt maturities.
• Officials said the operation seeks to increase liquidity along the dollar curve and provide a pricing reference for corporates, with Citibank, Deutsche Bank and Goldman Sachs leading the deal and settlement set for November 14.