(Adds Valle quotes, background)
By Walter Brandimarte
COSTA DO SAUIPE, Brazil, March 28 Brazil is
looking at the euro zone and Japan to open new financing options
for companies that are expected to invest in the country's
infrastructure sector, Treasury undersecretary Paulo Valle said
After returning to the euro capital market this week
following a six-year hiatus, the Treasury may sell
yen-denominated bonds in the next few months to start building a
yield curve there, he said.
"We have a strong demand from the Japanese market," Valle
told investors on the sidelines of a meeting hosted by the
Inter-American Development Bank in a resort 47 miles (75 km)
north of Salvador. "Maybe this year we'll start again to issue
bonds in that market to open it to the corporate sector."
Brazil is trying to boost funding alternatives to domestic
companies in order to encourage much-needed investment in
President Dilma Rousseff's infrastructure program. Initial
disagreement over the return rates for a number of concessions
for airports, roads and railways have put the program on a slow
Until recently, the Treasury had focused mostly on the
market for dollar-denominated global bonds in order to create a
liquid yield curve there. This year, however, it decided to
diversify its investor base, Valle said.
The first step was to return to the euro market, where
Brazil had only two outstanding bonds maturing in the next few
years. On Thursday it sold 1 billion euros worth of seven-year
global bonds at a yield of 2.961 percent, its first
euro-denominated issue since 2006.
(Additional reporting by Alonso Soto; Editing by Chizu Nomiyama
and Chris Reese)