July 27, 2006
Brazil likely to join Venezuela and Argentina in debt bond issuance

(El Universal) - "Brazil is likely to join Venezuela and Argentina in the issuance of their so-called joint south debt bond, Argentine press reports said.

During the recent presidential summit of the Common Market of the South (Mercosur), Argentine, Brazilian and Venezuelan financial officials assessed the joint debt instrument issuance. They considered the possibility to tap the financial markets in one single debt bond comprising the three countries.

Newspaper El Clarín underscored that the Argentine and Brazilian Economy ministers have addressed this issue during their meetings. The report noted that Argentina believes this joint bond will allow for funds raising in the international market together with the country with the lowest rate in the region. Officials explained that the first version of the bilateral bond would be headed by Venezuela, and Argentina is to join Venezuela. In this way, Argentina would benefit from the low risk-country of Venezuela.

Over the last 14 months, Venezuela has purchased USD 3.3 billion in Argentine debt bonds (...)".