Brazil raises $4.5 billion in its first external debt issuance this year

BRASILIA/SAO PAULO, Feb 9 (Reuters) - Brazil raised $4.5 billion with the sale of dollar-denominated bonds, the Treasury said on Monday, in the first such offering by Latin America's largest economy in 2026.

Brazil's Treasury said in a statement that $3.5 billion came from the issuance of new benchmark bonds maturing in 2036 at 6.25% per year coupon and 6.4% yield. The country raised another $1 billion by reopening an existing bond due in 2056 at 7.3% yield, it added.

The sale aims to boost liquidity along Brazil's sovereign dollar yield curve, provide a pricing reference for corporate issuers and pre-fund upcoming foreign-currency debt maturities, the Treasury said.

The deal's demand surpassed the issued volume by about 2.7 times, and the order book reached a peak of some $12 billion, it said.

The Brazilian government has said it sees room to increase external bond issuance in 2026 from a record $10.8 billion in 2025, despite general elections scheduled for October that many market participants said could add volatility through the year.

The government plans to operate mainly in U.S. dollar issuances, while also resuming euro-denominated offerings and launching its first issuance in Chinese yuan this year, Treasury Secretary Rogerio Ceron has said.

The sale on Monday is being led by HSBC, J.P. Morgan, Santander and Sumitomo. It is Brazil's first dollar-denominated bond sale since November, when it raised $2.25 billion.