MercoPress. South Atlantic News Agency

Brazil considering selling 100-year bonds and foreign debt denominated in Real

Following on the successful offering by Mexico

Brazil is considering selling 100-year bonds after Mexico succeeded in offering the longest-maturity debt issued by a Latin American country, Treasury Secretary Arno Agustin said.

“As Brazil improves, this possibility, that was hard before, is starting to be considered,” Augustin said in Brasilia. “A sale with this profile can be assessed in the future.”

Mexico sold 1 billion US dollars of bonds due in 100 years on Oct. 5, taking advantage of global demand for higher-yielding debt amid record-low interest rates in the U.S. and Europe.

In Brazil, Finance Minister Guido Mantega doubled a tax foreigners must pay to buy domestic debt in a bid to temper dollar inflows.

There may be investor demand for 100-year bonds from Brazil and other countries, said Guillermo Osses who oversees 50 billion USD in emerging-market assets at Pacific Investment Management Co.

“It wouldn’t be surprising, given how well this bond has performed in the market,” said Osses who’s based in Newport Beach, California. “Brazil, for example, could fit very well that type of description.”

Brazil may also sell Real-denominated foreign debt before the end of the year, Augustin said.