Brazil's Treasury announced on Tuesday that it successfully raised $2.5 billion through the issuance of a new 10-year dollar-denominated sovereign bond with a 6.75% yield, named the Global 2035. The initiative aims to bolster liquidity in Brazil's external yield curve, as part of the government's strategic plan to deepen market participation.
An undisclosed source revealed that the initial price was approximately 7.05%. Bradesco, JP Morgan, and Morgan Stanley were listed as the leading institutions overseeing the transaction. The Treasury emphasized the significance of this bond issuance in extending maturities, diversifying benchmarks, and broadening the investor base.
This development coincides with a positive trend in Brazil's five-year Credit Default Swap (CDS), which has decreased by over 20% year-to-date. This improvement contrasts with the challenges faced in December due to fiscal uncertainties and global market volatility following the election of U.S. President Donald Trump, which triggered a selloff in Brazilian assets.
Brazil's central bank governor, Gabriel Galipolo, noted that the market responded positively to the delay in imposing tariffs by President Trump. This contrasts with earlier expectations of inflationary pressures resulting from his policies.
In June of the previous year, Brazil last accessed international markets, raising $2 billion through a sustainable bond issuance. The Brazilian Treasury, in its recent 2025 financing plan, disclosed plans to continue issuing conventional and sustainable sovereign bonds on the international stage throughout the current year.