BRASILIA, March 27 (Reuters) - Brazil’s Treasury mandated banks for the issuance of seven-year euro bonds in European and American markets, according to a government statement on Thursday.
The potential bond sale comes days after ratings agency Standard & Poor’s downgraded Brazil’s sovereign debt rating to “BBB-”, one notch above junk status.
The government has 800 million euros ($1.1 billion) outstanding in euro debt securities maturing in Feb. 2015. The country first issued them in Feb 2005, with a re-tapping taking place a year later.
Government sources told Reuters earlier in the month that potential spillovers from the crisis in Ukraine could have made Brazil push back its plans to offer euro bonds beyond March. Brazil hired JPMorgan Chase & Co, Banco Santander SA and Banco do Brasil SA earlier in the month to organize meetings in Europe with investors. (Reporting by Silvio Cascione; Editing by John Stonestreet)