Tweet
By Lester Pimentel and Bryan Keogh
Jan. 6 (Bloomberg
Brazil and Colombia each sold $1 billion of bonds and Chile said it may also tap international markets, part of a push by developing nations to bring in dollars to offset a six-month tumble in commodity exports.
Brazil sold 10-year notes to yield 6.13 percent, or 3.7 percentage points above U.S. Treasuries, while Colombia sold 10- year securities to yield 5.03 percentage points more than U.S. Treasuries, or about 7.5 percent. Chilean Finance Minister Andres Velasco said the government plans to issue its first foreign bonds since 2004 to help fund a fiscal stimulus plan.
“They need to borrow,” said Paul McNamara, who helps manage $1.2 billion of emerging-market assets at Augustus Asset Managers Ltd. in London. “It’s a good sign that these countries can get a hold of a decent size of dollars.”
The countries are following Mexico, which last month became the first emerging-market nation to tap international debt markets since the global credit crisis deepened in September.
ING Groep NV estimates foreign bond sales may rise 68 percent to a four-year high of $65 billion in 2009 as developing countries seek to finance deficits and replenish foreign reserves after the crisis sparked capital outflows and drove down commodity prices.
[..]
Emerging-market borrowing costs have declined to near pre- crisis levels after soaring in September and October. Brazil’s benchmark bonds due in 2040, the most-traded developing-nation securities, yield 8.23 percent today, down from 11.2 percent on Oct. 22, according to JPMorgan Chase & Co. The bonds yielded 8.16 percent at the end of August.
[..]
Barclays Plc and Morgan Stanley managed Colombia’s sale. Goldman Sachs Group Inc. and Merrill Lynch & Co. managed Brazil’s sale. Total demand for Colombia’s bond was equivalent to 2.7 times the amount offered, the Finance Ministry said in a statement. Brazil’s Treasury said it may sell an additional $25 million of the 10-year bonds in Asian markets.
Other developing nations are lining up to sell.
Peru’s Finance Minister Luis Valdivieso met with investors in New York, Boston, London and Madrid last month to drum up demand for the country’s first foreign sale in almost two years. The Philippines is considering selling bonds overseas to finance a widening budget deficit, Treasurer Roberto Tan said yesterday. Arkady Dvorkovich, an economic adviser to Russian President Dmitry Medvedev, said in a Dec. 24 telephone interview that the government is considering a foreign debt sale.
Jan. 6 (Bloomberg
Brazil and Colombia each sold $1 billion of bonds and Chile said it may also tap international markets, part of a push by developing nations to bring in dollars to offset a six-month tumble in commodity exports.
Brazil sold 10-year notes to yield 6.13 percent, or 3.7 percentage points above U.S. Treasuries, while Colombia sold 10- year securities to yield 5.03 percentage points more than U.S. Treasuries, or about 7.5 percent. Chilean Finance Minister Andres Velasco said the government plans to issue its first foreign bonds since 2004 to help fund a fiscal stimulus plan.
“They need to borrow,” said Paul McNamara, who helps manage $1.2 billion of emerging-market assets at Augustus Asset Managers Ltd. in London. “It’s a good sign that these countries can get a hold of a decent size of dollars.”
The countries are following Mexico, which last month became the first emerging-market nation to tap international debt markets since the global credit crisis deepened in September.
ING Groep NV estimates foreign bond sales may rise 68 percent to a four-year high of $65 billion in 2009 as developing countries seek to finance deficits and replenish foreign reserves after the crisis sparked capital outflows and drove down commodity prices.
[..]
Emerging-market borrowing costs have declined to near pre- crisis levels after soaring in September and October. Brazil’s benchmark bonds due in 2040, the most-traded developing-nation securities, yield 8.23 percent today, down from 11.2 percent on Oct. 22, according to JPMorgan Chase & Co. The bonds yielded 8.16 percent at the end of August.
[..]
Barclays Plc and Morgan Stanley managed Colombia’s sale. Goldman Sachs Group Inc. and Merrill Lynch & Co. managed Brazil’s sale. Total demand for Colombia’s bond was equivalent to 2.7 times the amount offered, the Finance Ministry said in a statement. Brazil’s Treasury said it may sell an additional $25 million of the 10-year bonds in Asian markets.
Other developing nations are lining up to sell.
Peru’s Finance Minister Luis Valdivieso met with investors in New York, Boston, London and Madrid last month to drum up demand for the country’s first foreign sale in almost two years. The Philippines is considering selling bonds overseas to finance a widening budget deficit, Treasurer Roberto Tan said yesterday. Arkady Dvorkovich, an economic adviser to Russian President Dmitry Medvedev, said in a Dec. 24 telephone interview that the government is considering a foreign debt sale.
Comment