BRASILIA: The Brazilian government will very likely sell 10-year dollar-denominated global bonds in early September, Treasury chief Arno Augustin told Reuters on Friday.
Augustin said the sovereign debt sale would help improve financing conditions for Brazilian corporate issuers by setting a new debt benchmark.
"There is a high chance that we will issue 10-year (debt) in dollars in the coming period (month). Probably a new 10-year bond," Augustin said, without ruling out reopening an existing bond.
The possible issuance is a sign that market conditions for emerging economies are improving after a worsening of the European debt crisis hit investors' appetite for risky assets earlier this year.
Prices of Brazil's global bonds have recovered steadily in the past few months. Benchmark bonds due 2022 traded on Friday at 144.313, near an all-time high of 144.688 reached late last month.
Brazil last sold dollar-denominated global debt in November when it issued $1 billion in 30-year bonds after reopening an existing issue.
Brazilian policymakers are scrambling to expand the sources of funding for Brazilian companies at a time when the government is privatizing thousands of kilometres in roads and railways to bolster the economy. Brazilian companies suffer from a scarcity of long-term financing, mostly for infrastructure projects that are usually delayed for years by legal and environmental red tape.
Back in April, the Brazilian government sold 3 billion reais ($1.48 billion) in 2024 global bonds denominated in the local currency.
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