Brazil Official: Govt May Sell Another Overseas Bond This Year

BRASILIA (Dow Jones)–Brazil’s government could consider launching another overseas bond this year if conditions are favorable, Federal Treasury Secretary Arno Augustin said Tuesday.

Speaking at a hearing of the congressional budget committee, Augustin said the government was analyzing the best moment for a possible new debt issue.

Brazil in January sold $1 billion in global bonds with a 2019 maturity. The bond came with an interest coupon of 5.875% for an effective yield of 6.127%.

The government successfully reopened that issue in early May, selling $750 million at a yield of 5.8%, or 252 basis points over U.S. Treasurys.

Brazilian finance ministry officials have said that although the country doesn’t need additional foreign financing for public debt, the government could consider new “qualitative” debt issues with an eye toward improving the country’s yield curve.

-By Gerald Jeffris, Dow Jones Newswires; (5561) 3335-0832;  gerald.jeffris at dowjones.com

Waldemar Jezler – www.libracap.net

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