By Brazil Stock Guide – Brazil’s Treasury raised $2.25 billion in global markets through a dual-tranche sustainable bond operation, with a new 2033 issue and a reopening of its 2035 notes, the Treasury said on Thursday. The move marks the country’s third ESG-oriented issuance, reaffirming its commitment to sustainable finance and environmental policies.
The operation, first reported by IFR, a financial information service by LSEG, and later confirmed by Reuters, attracted strong international demand. According to the Treasury, proceeds will be allocated to initiatives promoting climate change mitigation, natural resource conservation, and social development projects.
Breakdown of the operation
Of the total amount raised, $1.5 billion came from the newly issued 2033 bonds, while the reopened 2035 tranche contributed $750 million. The deal was led by Citigroup Inc. (C), Deutsche Bank AG (DBK.DE), and Goldman Sachs Group Inc. (GS).
Initial price guidance for the notes was set at 6.00% for the 2033 maturity and 6.50% for the 2035 reopening, reflecting a competitive yield environment amid global investor appetite for emerging market sustainable assets.
The Treasury noted the operation also aimed to improve liquidity in Brazil’s U.S. dollar sovereign yield curve, providing a benchmark for private sector issuers and partially pre-funding upcoming foreign debt maturities.
Context and outlook
This marks the third sustainable bond issuance by the Brazilian government, following previous deals in November 2023 and June 2024. The move is part of a broader strategy to deepen Brazil’s green finance market and align its debt management with environmental, social, and governance (ESG) principles.
The Treasury emphasized that the issuance aligns with Brazil’s broader climate agenda and international commitments to sustainable development.