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Brazil plans to issue yuan bonds in China annually

The debut is expected before the end of the year, and the government says the program is mainly meant to attract new investors rather than raise funds.

Reported · Written up by our desk · Trade & Tariffs

Brazil plans to sell yuan bonds in China every year instead of issuing only one-off deals, a senior Brazilian treasury official said, in an approach aimed at making the Chinese currency a regular part of its external borrowing.

The debut issuance is expected before the end of the year, and the government described it as small enough that it is not relying on the proceeds. External debt is currently about 4.0% of the federal stock, according to the official.

Brazil said the effort is largely about unlocking new investors and having a yuan borrowing curve that can support future financing, noting that selling Brazilian assets to Chinese investors is harder without such a benchmark.

The treasury official also highlighted that the approach is tied to broader market access considerations, including how Brazil has not previously had a yuan curve to borrow against.

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