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Brazil is exploring a return to the global debt markets, potentially launching its first euro-denominated bond issuance since 2014. It has arranged a series of investor meetings with a syndicate of banks including BBVA, BNP Paribas, BofA, and UBS. It aims to update investors on Brazil’s economic progress and public debt strategy following a record $11bn in issuances last year. The government intends to build a euro-denominated reference curve, diversifying away from the US dollar. Finance Minister Dario Durigan also indicated plans for future issuances in China. The planned issuance comes ahead of Brazil’s October presidential elections, with investors monitoring President Lula’s potential challengers. Currently, Brazil is rated Ba1/BB/BB by Moody’s/S&P/Fitch.
Brazil’s dollar bonds were trading higher with its 8.25% 2034s up 0.9 points at 114.4, yielding 5.9%.
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