Brazil Issues Half a Billion Dollars in Bonds in US and EU

    The dollar and the euro

    The dollar and the euro The issuing of Global bonds in the European and United States market, announced this Wednesday, May 7, by Brazil's National Treasury, is going to total US$ 500 million. The bonds will mature in 2017 and should start being negotiated for 4.8% above face value.

    The higher the negotiated value compared with the face value, the greater the interest of investors in purchasing the Brazilian bonds. According to the Treasury, investors should have a return of 5.299% per year.

    Until maturing, on January 17th, 2017, the buyers of the bonds will receive earnings twice a year. These extra earnings, referred to as coupon earnings, will be paid in January and July, with a 6% annual interest rate.

    The Treasury should also issue up to US$ 25 million in Global 2017 bonds in the Asian market. The announcement was scheduled to be made before the opening of stock exchanges in Asia on Thursday.

    The last time that the Brazilian government issued bonds to raise funds abroad was on June 19th last year, when the country issued Global bonds, denominated in reais (the Brazilian currency), to mature in 2028. The value of the issuance, at the time, totaled 750 million reais (US$ 451.3 million).

    Since the second half of last year, the country had stopped issuing bonds, mostly due to turbulence in the international financial sector, which was prompted by the United States mortgage crisis.

    ABr

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    • Show Comments (13)

    • Joรƒฦ’ร‚ยฃo da Silva

      Ch.c
      [quote]Joa and your Nelfim Netto :
      here is a description of him : “His failure to understand the imbalances created by his capital market policies in 1971, led to the market crash of that year, which he blamed on speculators, saying that the losses would serve as a beneficial learning experience.”[/quote]

      Hey Ch.c, he is not [i]my[/i] Delfim Netto ๐Ÿ˜‰ Go read the article in the link (in the same magazine):

      [url]http://www.brazzilmag.com/content/view/9301/1/[url]

      As for your comment on him, it is not a big news to me! Incidentally in the early 80ร€โ€šยดs he was known as “Sr.Deposito Compulsร€ฦ’ยณrio”. You don’t have to google to find out what it means. There is a nice Brazilian blogger who goes by the name of “DU48” (from our state) and he has good memories too. You better ask him ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      Ch.c
      [quote]Have a look now at
      http://www.alterpresse.org/imprimer.php3?id_article=7148 [quote]

      Though the article is in French, I did manage to read it! Interesting one on the evolution of Coffee production in Haiti. As far as I knew, the coffee needed to be grown on hilly terrain and some months ago, a couple of other Brazilian bloggers also mentioned about it. However, you should be able to tell us how successful your venture is after the first harvest of BBC in your farm in West Bahia.

      [quote]
      My next commercial idea is…….Pata Negra !!!!!! Smile
      Never heard of it ? You should.
      A spanish ham ! Simple…. [/quote]

      Yes, I have heard of it! It is a great idea. As for as I know, it is from a different type of pigs and where do you intend getting them?

      I would imagine that from what you describe about the environment where they should be grown, may be in one of the 3 Southern states where you can find hilly terrain.Chestnut? I don’t think they are grown in the South. I will check about the Oak, if you are serious about the project.

      I think that it is worth investing in farmland in Brazil to cultivate exotic things that are for the exclusive and demanding segment of the global market.

      btw, how is the market for oysters in EU?

    • Your worse nightmare

      go ahead sharpen your swiss knifes…laugh laugh laugh
      and what you going to do trough rocks on a sling shut? ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ or you gonna send that airforce of yours with man strapped on a wing!! ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰
      that is pretty funny! laufg laugh ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜ฎ ๐Ÿ˜ฎ ๐Ÿ˜ฎ ๐Ÿ˜ฎ ๐Ÿ˜ฎ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰

    • Your worse nightmare

      Yeah Ch.c a.s.s.h.o.l.e.
      But we can still blow your little s.h.i.t.t.y country off the face of this earth and insure that for a half-life of 600 years you won’t grow s.h.i.t in that little land of yours! ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ 8) ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰

    • ch.c.

      To Joao and simpleton !
      Joa and your Nelfim Netto :
      here is a description of him : “His failure to understand the imbalances created by his capital market policies in 1971, led to the market crash of that year, which he blamed on speculators, saying that the losses would serve as a beneficial learning experience.”

      Good luck….Brazil !
      But as you can see, typically Brazilian as usual, is that the responsibility was on OTHERS…!
      Time and again proven in the articles…in this site !

      ๐Ÿ˜€ ๐Ÿ˜‰

      Simpleton :
      if you prefer to sell your pigs at discounted prices as everything “made in Brazil”…you are of course free to do it.
      From my side, I prefer to add value and sell my goods several times your own price.
      That is what differ a Brazilian or Americans and Swisses…in whatever you/we produce.
      Guess then why we are wealthier than Brazilians…or Americans !

      Just look at the american cars…as a good example !
      They dont even come close to europeans or japanese cars.
      Being scarcastic in my sarcasms let me add this, and I really mean it :
      the USA is by now, or is nearly, the best EMERGING nation on earth !!!!!
      Your budget deficit is so big that it became UNCONTROLLABLE.
      Your trade deficit is somewhat lower….but still US$ 58 billion….PER MONTH !
      Anf this despite the US$ paper lost 80 % of its value…in 40 years…against the currency of my country. But not that bad when compared with the BRL….that lost 99,9 % of its value during the same time against your own WEAK currency.
      You are so good on exports, that it represents around US$ 5’500.- annually…per capita !
      Against US$ 25’000.- per capita…in my country ! And less than US$ 1’000.- for Brazil !

      But of course…you are better than we are ! Even if you have no basis to demonstrate it !

      Being overall a contrarian, I can only envision that things will not become good….but less bad or better.
      That makes me bullish for America…for 3 to 5 years.
      But reality being what it is, America is in a SECULAR DOWNTREND.
      And 3 to 4 years of rosier returns not only in the stock market but also in the currency…should keep me happy (and my purse too) for such a length of time.

      Ohhhh and finally….contrary to you…..in my backyard I have ZERO pig.
      My backyard has thus no pig muds, very stinky, like yours !!!!!!!!

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      Ch.c
      [quote]And I dont know Delfim Netto ! Will see what he will say…and then comment ![/quote]

      What a pity, you don’t know him. In the early 80ร€โ€šยดs , he was the Czar of our economy. His motto was: “Deixa bolo crescer” (Leave the cake to grow so that all will have plenty to eat). The cake grew, but nobody got to eat it ๐Ÿ™

      Stay tuned during the week end.Will come back to give some more info. Remember, it is Friday night and I am taking a well deserved “Ethanol break” ๐Ÿ˜‰

      Of course you guys in Geneva don’t know what is socializing ๐Ÿ™‚

    • Simpleton

      Where have all the nuts gone?
      Haven’t seen any oaks in Brazil, ch. Have three kinds in my back yard. As for chestnuts those have been in serious decline, a few left here and there but I’m afraid to ask my neighbors to let my pigs roam till I’ve imported something they may have more of an interest in in taking at their pleasure in return for their favor.

    • ch.c.

      Joa !
      We have not sold our farm…yet !
      But we are thinking of doing so later this year or in 2009

      My next commercial idea is…….Pata Negra !!!!!! Smile
      Never heard of it ? You should.
      A spanish ham ! Simple….

      Retail price of Pata Negra 3 stars….. in Geneva : US$ 40.- per 100 grams.
      You read well….forty US$ ….per 100 grams..

      The cheapest one….no star or 1 star….US$ 13.- … at our Wal Mart equivalent !!!

      And not on permanent year round sale for the cheapest one.
      Yesssssss……the different qualities are named by 1, 2 or 3 stars !

      Of course, produced in Brazil, it would have some (a lot in fact) import restriction here and in the EU, and because of no long time quality label….price will have to be much lower.

      Still…..selling it to the new riches in Brazil, Russia and China and why not in the USA, even at a much lower price, but still a high price, should be VERY VERY PROFITABLE !!!!!

      Will eventually do it when a) the BRL will have come down sharply B) farm land prices also down. The farm must be in a temperate climate….not too warm or dry. These pigs must live in free range nature…but in farms because they are not wild pigs. They eat mostly acorns from oak trees forests ! Chestnuts are also ok…but is not offically revealed !!!!

      Do you know if Brazil has oak trees or chestnuts forests ??????? Where ?

    • ch.c.

      To Joao !!!!!!!!!!!
      No Joao…. I never ever mentioned this new tax—-on this site !

      And I dont know Delfim Netto ! Will see what he will say…and then comment ! ๐Ÿ˜‰

    • ch.c.

      Joao !!!!
      On my BBC :
      2008 will be the first commercial harvest, but small ! Should be around 18-25 sacs per hectare.

      You probably know that coffee is traded now at US$ 1.35 per pound on the futures market.
      Which is of course much higher than the price paid to the farmer.
      Correct ?
      Have a look now at
      http://www.alterpresse.org/imprimer.php3?id_article=7148

      You see that selling Quality instead of Quantity could be quite rewarding.
      Plus…..our farm is on flat land in opposition to most of Haiti coffee plantations, we harvest mechanically not manually, and we produce far more than them per hectare due to center pivots irrigation. And we dont have annual typhoons…..in Western Bahia !!!!!!!
      And coming from the same farm, makes a more uniform product of still higher quality ….by definition !

      Not bad….the price ! Isnt it ???????
      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜‰ ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      Ch.c
      [quote]Furthermore with your devastating inflation report published today……..I sold ALL my BRL Government bonds…..today !
      If you recall, I said I will sell all my bonds right after the first interest rate increase !
      The first rate increase was done around a week or so ago…but then the next day S&P increased the country rating. Therefore I waited a little more….until today ![/quote]

      My memory is very good too. A smart move. You really did not want to end up like the French “Velhinhas” about whom we discussed last year!!

      I am sure you have not sold your farm in BA. Confirm.

      [quote]Furthermore you are probably not aware but approximately a month ago, a new tax has been created by your idiot Mantega.
      The tax is 1,5 percent of the value, on the purchase only, of BRL Government INTERNAZIONAL Bonds ! Not on sales. [/quote]

      Of course, I am aware and you made it a point to stress this fact a dozen times on this blog ๐Ÿ™

      So, what do you think of Delfim Netto, back to take command of the Economy? You must know about him also ๐Ÿ˜‰ ๐Ÿ˜‰

    • ch.c.

      To Joao :
      ZERO !!!!!!!
      This is US$ bonds….not Brazilian Real Currency Bonds !
      Furthermore with your devastating inflation report published today……..I sold ALL my BRL Government bonds…..today !
      If you recall, I said I will sell all my bonds right after the first interest rate increase !
      The first rate increase was done around a week or so ago…but then the next day S&P increased the country rating. Therefore I waited a little more….until today !

      Furthermore you are probably not aware but approximately a month ago, a new tax has been created by your idiot Mantega.
      The tax is 1,5 percent of the value, on the purchase only, of BRL Government INTERNAZIONAL Bonds ! Not on sales.

      You see…..I know what I am talking !

      ๐Ÿ˜€ ๐Ÿ˜‰ ๐Ÿ˜€ ๐Ÿ˜‰

    • Joรƒฦ’ร‚ยฃo da Silva

      Brazil Issues Half a Billion Dollars in Bonds in US and EU
      Ch.C, how many Millions are you going to invest this time? ๐Ÿ˜ฅ

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