Economy February 9, 2026

Brazil Re-enters Global Debt Market with New Dollar Bonds and 2056 Expansion

Offering includes 2036 maturities and an increase to existing 2056 notes, with initial yields discussed in the 6.7%–7.6% range

By Hana Yamamoto
Brazil Re-enters Global Debt Market with New Dollar Bonds and 2056 Expansion

Brazil has returned to international debt markets with a new bond offering that comprises dollar-denominated notes maturing in 2036 and an expansion of its outstanding 2056 bonds. Initial pricing conversations point to yields near 6.7% for the 2036 tranche and around 7.6% for the 2056 expansion. The transaction follows $11 billion of foreign bond issuances in 2025 and is being managed by a group of global banks.

Key Points

  • Brazil launched a new international bond offering including dollar bonds maturing in 2036 and an expansion of existing 2056 notes.
  • Initial pricing talks suggested yields near 6.7% for the 2036 bonds and about 7.6% for the 2056 expansion.
  • The deal follows $11 billion of foreign bond issuance in 2025 and is being managed by HSBC, JPMorgan, Santander and SMBC Nikko.

Brazil has resumed activity in international capital markets with a fresh bond sale announced on Monday. The package consists of newly issued dollar bonds maturing in 2036 and an enlargement of the country's already outstanding notes due in 2056.

Market discussions around initial pricing have indicated yields of roughly 6.7% for the 2036 issuance and about 7.6% for the expanded 2056 line. Those yield levels emerged during early investor conversations as the government and banks worked to gauge demand.

The offering arrives after a year of intense foreign-debt issuance from Brazil. In 2025, the country placed $11 billion of bonds in overseas markets, the largest annual total for international bond activity since at least 2000, according to Treasury data cited by market observers.

Transaction management is being handled by a group of international banks. HSBC, JPMorgan, Santander and SMBC Nikko are reported to be the arrangers responsible for running the sale, which market participants expected to see priced on Monday.


Context and market mechanics

The new 2036 tranche and the increase to the 2056 line are structured as dollar-denominated obligations. The addition to the 2056 notes represents an expansion of an existing maturity rather than a new distant-dated bond series.

Details on final pricing and allocation were set to be determined as the deal moved from investor marketing into formal pricing. Early yield indications from initial discussions serve as a guide to how the market was valuing the issuance ahead of formal terms being fixed.


Implications for issuers and markets

For Brazil, tapping global investors with both a medium-long 2036 paper and a longer-dated 2056 expansion continues the government's engagement with international funding sources following a heavy issuance year in 2025. The participation of major global banks points to a coordinated placement effort aimed at attracting demand across investor bases.

Further specifics on investor interest, final coupon levels and order book depth remained tied to the formal pricing process scheduled for Monday.

Risks

  • Final pricing and investor demand were still pending at the time of the report, leaving uncertainty around ultimate yields and allocation - this affects debt markets and sovereign financing conditions.
  • The success of the offering depends on market reception to both medium-term (2036) and long-term (2056) dollar-denominated debt, which has implications for bond investors and the government's foreign funding plan.

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