BRASILIA, June 5 (Reuters) – Brazil plans to announce its first-ever sovereign bond issuance in China, denominated in yuan, during a trip by a large delegation of government officials to the Asian country later this month, two people with direct knowledge of the matter told Reuters.
The planned issuance of so-called Panda bonds follows Brazil’s first euro-denominated bond sale since 2014, which raised €5 billion in April, adding momentum to a strategy unveiled earlier this year to expand the Latin American country’s presence in international debt markets, including through issuances in currencies other than the U.S. dollar.
The official agenda in Shanghai and Beijing led by Brazilian Finance Minister Dario Durigan is expected to run from June 24 to 26.
The Finance Ministry declined to comment.
The trip, which has been in the works for months, comes after President Luiz Inacio Lula da Silva recently praised deepening trade ties with China – Brazil’s largest trading partner – following setbacks with the administration of U.S. President Donald Trump, which proposed new tariffs on Brazilian goods and designated local criminal groups as “terrorist organizations.”
Ahead of the minister’s visit, Brazilian officials will travel to China next week for a financial subcommittee meeting involving agencies from both countries.
During the preparatory trip, Brazil will highlight financial instruments developed under Lula’s sustainability agenda, including blended finance auctions under the EcoInvest program, the proposed Tropical Forest Forever Facility, or TFFF, and progress in building a domestic carbon market.
Officials see these tools as key to boosting Chinese direct investment in strategic sectors of the economy.
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