Business · Markets · 2 hrs ago
Brazil plans its first yuan bond issue in China this month
Brazil is preparing its first bond issue in China, in the market for yuan-denominated debt known as Panda Bonds.
The government plans to raise up to 5 billion yuan, equivalent to about 3.76 billion reais on October 21.
The issue could take place after Brazil's second-round election, possibly in October, and government officials have been meeting Asian investors.
The Treasury aims to diversify its funding and build ties with Asian investors; Brazil already issues debt in US dollars and euros.
A government issue could give Brazilian companies a benchmark for borrowing costs in China.
Vale has applied to register a yuan bond programme of up to 10 billion yuan, while Suzano became the first non-financial issuer from the Americas to sell Panda Bonds in 2024.
Brazil is preparing its first issue of debt securities in China, potentially later in October.
The issue could raise up to 5 billion yuan, equivalent to 3.76 billion reais on October 21.
The Treasury aims to diversify its funding sources and build closer ties with Asian investors.
A Brazilian government team has recently met Asian investors to present the planned issue.
The issue could provide a benchmark for Brazilian companies seeking to raise money in China.
- Who
- Brazil’s National Treasury is preparing the issue.
- What
- Brazil plans to issue yuan-denominated debt securities in China for the first time. The issue could raise up to 5 billion yuan.
- When
- It may take place after the second round of voting and could happen in October 2026.
- Where
- China’s local debt market.
- Why
- To diversify the Treasury’s funding sources and build closer ties with Asian investors.
This story does not have two clearly opposing sides.
The Treasury took the first official steps with Chinese market regulators.
A Brazilian government team met Asian investors to present the planned issue.
Brazil’s first issue in China may take place, possibly in October.
- Potential issue size
- Up to 5 billion yuan
- Equivalent value
- 3.76 billion reais on October 21
- Advisor
- Bank of China
- Planned market
- China’s local debt market
- Prior Brazilian issuer
- Suzano raised 2.6 billion yuan in 2024