UPDATE 1-Brazil repurchases $2 billion in costlier global bonds

Thu Jul 24, 2014 11:11am EDT

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(Adds background on bond purchases, table)
    BRASILIA, July 24 (Reuters) - The Brazilian government has
bought back $2 billion worth of costlier global bonds with
maturities that range from 2024 to 2041, the Treasury said in a
statement on Thursday.
    The repurchase was made with the proceeds of the sale of
$3.55 billion in global bonds due in 2045. 
    The deal aims to facilitate future debt issues by Brazilian
companies, whose bonds are often priced in accordance with the
country's sovereign yield curve, or the returns paid on
different government bond maturities. 
    The new 2045 bond issued by Brazil will pay investors a
yield of 5.131 percent, or 187.5 basis points above comparable
U.S. Treasuries, the widest spread for a 30-year bond issued by
the Brazilian government since 2009.
    
   Bonds repurchased by the Brazilian Treasury:
 Bond            Maturity  Coupon  Buy-ba  Buy-back   Remaining
                           (pct)   ck      amount     stock
                                   price   USD mln    USD mln
 Global 2024     April      8.875  141.32      1.9     1,144.34
                 15, 2024                             
                                                      
 Global 2024 B   April      8.875  141.32      3.89       92.29
                 15, 2024                             
                                                      
 Global 2025     Feb 4,     8.750  141.33    112.27      964.08
                 2025                                 
                                                      
 Global 2027     May 15,   10.125  159.56     99.91    1,333.44
                 2027                                 
                                                      
 Global 2030     March 6,  12.250  185.93     45.50      441.98
                 2030                                 
                                                      
 Global 2034     Jan 20,    8.250  140.22    371.49    1,691.47
                 2034                                 
                                                      
 Global 2037     Jan 20,    7.125  128.23    949.87    2,129.57
                 2037                                 
                                                      
 Global 2041     Jan 7,     5.625  109.33    460.36    2,503.91
                 2041                                 
                                                      
 Total                                     2,045.19   10,301.08
    

 (Reporting by Alonso Soto and Walter Brandimarte; Editing by
Grant McCool)
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