Brazil’s Minister of Finance, Dario Durigan, recently filed a Letter of Presentation of the Republic with China’s capital market regulatory bodies, marking the first formal step towards the issuance of Brazilian sovereign bonds denominated in yuan, known as Panda Bonds. The document describes Brazil’s economy and presents the guidelines for the operation, as well as the use of the funds to be raised.

During the agenda marking the delivery of the Letter of Intent for the Issuance of Panda Bonds, Dario Durigan said that Brazil and China could jointly lead the world economy by strengthening co-operation and building better living conditions for their citizens. The Minister added that Brazil was ready to issue Panda Bonds in the coming months, as the next steps are taken with the People’s Bank of China.

National Treasury Secretary Daniel Leal explained that the delivery of the document constituted a first step. For the operation to be carried out and its characteristics to be defined, it will still be necessary to await the conclusion of the applicable legal and operational procedures, as well as the development of market conditions in force at the time of the operation.

(Source: Federal Government of Brazil, 25 June)