(Updates with final pricing details)
BRASILIA, Sept 3 Brazil on Wednesday sold $1
billion worth of a reopened global bond due in January 2025
, taking advantage of strong demand for Brazilian
assets to reduce debt costs.
Appetite for Brazilian assets have been on the rise as
opinion polls showed declining support for the re-election of
President Dilma Rousseff, whose economic policies have been
strongly criticized by investors. They are betting Brazil's next
president may adopt tighter fiscal policies that would boost the
value of the country's debt.
The 2025 bond, which carries a coupon of 4.25 percent, was
priced at 103.05 to yield 3.888 percent, or 147 basis points
above comparable U.S. Treasuries, the Treasury said. That was
tighter than the initial price guidance of 160 basis points over
Treasuries reported by Thomson Reuters' IFR.
The Treasury initially planned to sell $500 million to $750
million of the 2025 bonds but increased the offering as demand
for the bonds topped $4 billion, a government official with
knowledge of the deal told Reuters.
The sale was managed by Morgan Stanley, Grupo BTG
Pactual SA and Citigroup Inc. The bonds were
sold in the European and U.S. markets, but an additional $50
million will be offered to Asian investors, the Treasury said.
In July, Brazil sold $3.55 billion in global bonds due in
2045, using part of those proceeds to buy back $2 billion worth
of costlier global bonds with maturities that ranged from 2024
(Reporting by Alonso Soto, writing by Walter Brandimarte;
Editing by Chizu Nomiyama, Jeffrey Benkoe and Jonathan Oatis)