Brazil Raises $2.25 Billion in Third Sustainable Sovereign Bond Issuance
Brazil's National Treasury has raised $2.25 billion through its third international sustainable sovereign bond issuance to fund social and environmental projects, highlighting strong investor demand and strategic debt management.
- • Brazil raised $2.25 billion in its third international sustainable sovereign bond issuance.
- • The new Global 2033 Sustainable bond raised $1.5 billion at 5.75% annual interest.
- • The Global 2035 bond reopening added $750 million, totaling $4.5 billion at 6.2% interest.
- • Investor demand was three times the offered volume, with 74% of participation from Europe and North America.
Key details
On November 6, 2025, Brazil's National Treasury successfully completed its third international issuance of sustainable sovereign bonds, bringing in a total of $2.25 billion. This operation comprised a new issuance and a reopening of an existing bond, aimed at financing social and environmental projects.
The centerpiece was the new Global 2033 Sustainable bond, which raised $1.5 billion with an annual interest rate of 5.75%, maturing on February 4, 2033. This bond offers a semiannual coupon of 5.5% and was priced at a spread of 187.4 basis points above U.S. Treasury securities, reflecting Brazil's strong fiscal credibility and a historically low risk premium. Additionally, the Treasury reopened the Global 2035 bond, increasing it by $750 million to a total of $4.5 billion, with a 6.2% annual return and maturity set for March 15, 2035.
Demand for the offering was robust, approximately tripling the volume offered, with over 150 investors participating. Seventy-four percent of the final allocation came from investors in Europe and North America, including many ESG-focused funds. The funds raised are designated for projects that combine social and environmental benefits, with the Treasury's August 2025 Pre-Issuance Report detailing that 50% to 60% of proceeds would finance environmental initiatives such as renewable energy and combating deforestation, while the remaining 40% to 50% will support social projects.
This issuance strengthens Brazil's external debt profile by diversifying the investor base and extending the average maturity of federal public debt. It also contributes to building liquid benchmarks for future Brazilian corporate issuances on global markets. The operation was coordinated by Citibank, Deutsche Bank, and Goldman Sachs, with financial settlement scheduled for November 14, 2025.
By executing this offering, Brazil reaffirms its commitment to sustainable fiscal policies aligned with international investor interest and environmental responsibility.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
Source articles (2)
Source comparison
Maturity date of Global 2033 bond
Sources disagree on the maturity date of the Global 2033 bond
agenciabrasil.ebc.com.br
"The Global 2033 Sustainable bond matures in 2033."
cnnbrasil.com.br
"The new bond, termed Global 2033 Sustainable, attracted $1.5 billion with a final investor rate set at 5.75% per year, maturing on February 4, 2033."
Why this matters: The first source states that the Global 2033 Sustainable bond matures in 2033, while the second source specifies a maturity date of February 4, 2033. This discrepancy could affect the understanding of the bond's timeline and investment details.
Percentage of investors from Europe and North America
Sources report different percentages of investors from Europe and North America
agenciabrasil.ebc.com.br
"The operation saw demand approximately three times higher than the offered volume, with over 150 investors participating, predominantly from Europe and North America."
cnnbrasil.com.br
"Approximately 74% of the final allocation was sourced from investors in Europe and North America."
Why this matters: The first source indicates that demand came from over 150 investors, predominantly from Europe and North America, but does not provide a specific percentage. The second source states that approximately 74% of the final allocation was sourced from these regions. This difference in detail affects the understanding of the investor base's composition.