Brazil to become regular borrower in China, treasury official says
Brazil intends to sell yuan bonds in China every year rather than once, a senior Brazilian treasury official said on Wednesday, in a plan that would make the Chinese currency a permanent fixture of its external debt. The debut is expected before the end of the year and is small enough that the government is not relying on the proceeds, with external debt at four per cent of the federal stock.…
Brazil plans to become a regular borrower in China, with a senior treasury official announcing that the nation will sell yuan bonds in China annually, rather than just once. This move is expected to position the Chinese currency as a permanent fixture in Brazil's external debt. Francisco Segundo, deputy secretary for public debt at the National Treasury, emphasized that the sale's value lies in unlocking new investors, rather than the direct financial benefit.
The debut is anticipated before the end of the year, though the amount raised remains undisclosed. Brazil aims to be the first Latin American sovereign in this market, following Kazakhstan, Pakistan, Slovenia and Indonesia who debuted this year. The government is keen on maintaining an active presence in the market, mirroring the European experience where Brazil last sold euro debt in 2014 before a decade-long absence.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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