The National Treasury raised US $ 2.5 billion of international investors with increased interest rates compared to the latest emissions, but with a reduction in the difference from US interest rates. The money came from the launch, on Tuesday (18), of $ 2.5 billion of a new role of external debt due in 2035.
In a statement, the National Treasury reported that the demand widely exceeded the volume issued, reaching about $ 6.5 billion in its peak. There was a significant participation of foreign investors, with 64% of buyers from Europe and North America and 28% from Latin America, including Brazil.
The rate obtained in the issuance of ten -year papers totaled 6.75% per year. Node last release Of this type of paper, in January last year, the performance had been 6.35% per year.
For ten -year papers, the rates were the highest recorded for this type of title since February 2005. At the time, the Brazilian government obtained interest of 7.9% per year.
Basic interest in the United States began to rise by 2022 and since December, there are stable between 4.25% and 4.5% per year. From July 2023 to August 2024, they were between 5.25% and 5.5% per year, at the highest level in about 40 years.
As the final rate of Brazilian titles abroad depends on the income of US securities, considering the safest investments in the world, another risk award, interest for Brazilian roles also rose from previous emissions.
Low interest rates indicate little distrust of investors that Brazil will not be able to pay the debt. In times of economic crisis and increased external fees such as the current, foreigners began to charge higher interest rates to buy Brazilian roles.
Through the launch of foreign debt securities, the government borrows money from international investors with the commitment to return resources with interest. This means that Brazil will return the money in several years with the correction of the agreed interest, 6.75% per year for the papers that win in ten years.
Spread
THE spreadwhich is the difference between the ten-year-old Brazilian titles and the American Treasury papers with the same time fell. The Brazilian role rate was 220 base points (2.2 percentage points) higher than that of American roles, the smallest since November 2019. In the previous emission, in January 2024, the difference had been 225.2 points (2,252 percentage points).
Funds raised abroad will be incorporated into the country’s international reserves on February 25. According to the National Treasury, issues abroad is not the main objective of reinforcing the country’s boundaries, but providing a reference for Brazilian companies that intend to raise funds in the international financial market.
