* Treasury reopening 2023 dollar-denominated bond
* Reopening yield at 2.75 percent -IFR
* Source says gov’t initially sought to raise $500 mln
BRASILIA, May 9 (Reuters) - Brazil raised $750 million in a reopening of its dollar-denominated global bond due in 2023 on Thursday, taking advantage of a rising appetite for emerging-market debt to bolster the liquidity of its benchmark 10-year paper.
The 10-year debt was priced at 98.946 cents on the dollar, with a yield of 2.75 percent, slightly below initial guidance of between 2.80 and 2.85 percent, IFR reported. The international sale, Brazil’s first since September, was managed by Barclays Plc and Citigroup Inc.
The sale aims to set a benchmark for Brazilian borrowing, helping corporate issuers get better terms in the dollar-denominated global bond market. The sale, initially set at $500 million, also seeks to increase the liquidity of the 2023 global bonds, a government source close to the deal told Reuters.
Brazil last sold debt abroad in September when it fetched a record-low yield in a $1.35 billion sale of 10-year debt.
Lingering worries over the health of the global economy drove up Brazilian bond yields early this year but market conditions began improving in March as expectations that growth across the globe was recovering gained traction.
The yield on Brazil’s global debt due in 2023 rose slightly after the sale on Thursday, trading at 2.751 percent, yet still well below the year high of 3.301 percent seen in mid-March.