The National Treasury announced this Thursday (5) the result of Brazil’s third issuance of sustainable sovereign bonds on the international market. The operation, carried out in the United States, generated US$2.25 billion, with the issuance of a new seven-year bond — the Sustainable Global 2033 — and the reopening of the Global 2035 bond.
The Sustainable Global 2033, due on February 4, 2033, was issued in the amount of US$ 1.5 billion, with interest of 5.75% per year, that is, paying 5.75% per year to investors. In addition, there is a coupon of 5.5% per year to be paid semi-annually, in February and August.
Intended to finance social and environmental projects, the sustainable bond had a spread 187.4 basis points (1.874 percentage points) above the United States Treasury bond. According to the Treasury, the risk premium is considered historically low, reflecting the international market’s favorable perception of the country’s fiscal credibility.
The resources raised with the sustainable bond will be allocated to eligible expenses in the environmental and social areas, in accordance with the Brazilian Framework for Sustainable Sovereign Bonds. According to the Pre-Issuance Report released in August 2025, the application will follow indicative ranges of 50% to 60% for environmental spending and 40% to 50% for social spending, promoting transparency in allocation.
THE first issuance of green bondsheld in November 2023, generated US$2 billion in financing social and environmental projects. The Treasury also raised US$2 billion in second releasein June this year.
Global 2035
In addition to the new role, the government increased the volume of Global 2035 by US$750 million, released in February this year. As a result, the bond has US$4.5 billion in circulation, including all issues. The paper matures on March 15, 2035 and pays interest of 6.2% per year and a spread of 210.9 basis points over ten-year US Treasury papers.
Demand
According to the National Treasury, the operation had demand around three times the volume offered, with the order book reaching approximately US$6.7 billion. More than 150 investors participated in the issuance, with 74% of the final allocation concentrated on investors from Europe and North America, including funds focused on ESG (environmental, social and governance) criteria.
The body highlighted that the new issue reinforces the role of external debt in diversifying the investor base and lengthening the average term of the Federal Public Debt, in addition to contributing to the formation of liquid benchmarks for future Brazilian corporate issues abroad.
The operation was coordinated by the banks Citibank, Deutsche Bank and Goldman Sachs, and the financial settlement, the date for the incorporation of the resources into Brazil’s international reserves, is scheduled for November 14th.
