Published on 12/3/2020 in the Prospect News Emerging Markets Daily.
New Issue: Brazil prices $2.5 billion add-ons to bonds due 2025, 2030, 2050
By Marisa Wong
Los Angeles, Dec. 3 – Federative Republic of Brazil priced $2.5 billion of additional 2 7/8% global bonds due 2025, 3 7/8% global bonds due 2030 and 4¾% global bonds due 2050, according to an FWP filing with the Securities and Exchange Commission.
Specifically, Brazil priced $500 million of additional 2025 bonds at 102.873 to yield 2.2%, $1.25 billion of additional 2030 bonds at 103.421 to yield 3.45% and $750 million of additional 2050 bonds at 103.995 to yield 4.502%.
The new 2025 bonds form a single series with the existing $1.25 billion of 2025 bonds issued on June 10; the new 2030 bonds are an add-on to the $2.25 billion of 2030 bonds issued on June 10; and the new 2050 bonds are a further issuance of the $2.5 billion of 2050 bonds issued on Nov. 14, 2019.
Citigroup Global Markets Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc. are the joint bookrunners for the tap issues (Ba2/BB-/BB-).
Proceeds will be used to repay outstanding debt.
| Issuer: | Federative Republic of Brazil
|
| Issue: | Global bonds, add-ons
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| Amount: | $2.5 billion
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| Bookrunners: | Citigroup Global Markets Inc., Santander Investment Securities Inc. and Scotia Capital (USA) Inc.
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| Pricing date: | Dec. 2
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| Settlement date: | Dec. 8
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| Ratings: | Moody’s: Ba2
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| S&P: BB-
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| Fitch: BB-
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| Distribution: | SEC registered
|
|
|
| 2025 bonds
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| Amount: | $500 million
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| Maturity: | June 6, 2025
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| Coupon: | 2 7/8%
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| Price: | 102.873
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| Yield: | 2.2%
|
| Spread: | 177.9 bps over Treasuries
|
| Call features: | Make-whole call at Treasuries plus 40 bps at any time
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| Total issuance: | $1.75 billion, including $1.25 billion issued on June 10
|
|
|
| 2030 bonds
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| Amount: | $1.25 billion
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| Maturity: | June 12, 2030
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| Coupon: | 3 7/8%
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| Price: | 103.421
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| Yield: | 3.45%
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| Spread: | 250.1 bps over Treasuries
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| Call features: | Make-whole call at Treasuries plus 50 bps at any time
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| Total issuance: | $3.5 billion, including $2.25 billion issued on June 10
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|
|
| 2050 bonds
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| Amount: | $750 million
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| Maturity: | Jan. 14, 2050
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| Coupon: | 4¾%
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| Price: | 103.995
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| Yield: | 4.502%
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| Spread: | 279.2 bps over Treasuries
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| Call features: | Make-whole call at Treasuries plus 45 bps prior to July 14, 2049; par call after that
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| Total issuance: | $3.25 billion, including $2.5 billion issued on Nov. 14, 2019
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