(Adds details of bond launch)
BRASILIA, Sept 3 (Reuters) - Brazil on Wednesday launched $1 billion worth of a reopened global bond due in January 2025 to reduce debt costs, taking advantage of strong appetite for Brazilian assets.
Appetite for Brazilian assets have been on the rise as opinion polls showed dimming chances for the re-election of President Dilma Rousseff, whose economic policies have been strongly criticized by investors. They are betting Brazil's next president would adopt tighter fiscal policies that would boost the value of the country's debt.
The Treasury initially planned to sell $500 million to $750 million of the 2025 bonds, but increased the offering as demand for the bonds topped $4 billion, a government official with knowledge of the deal told Reuters.
The strong demand also allowed the Treasury to lower the return paid on the bonds.
Initial price talk was for the bonds to be sold at a spread of 160 basis points over comparable U.S. Treasuries. However, they were launched at a spread of 147 basis points over U.S. Treasuries, Thomson Reuters IFR reported.
The sale was managed by Morgan Stanley, Grupo BTG Pactual SA and Citigroup, the Treasury said on Wednesday. The bonds are initially being sold in the European and U.S. markets but will later be offered in the Asian market, the Treasury said.
In July, the Treasury sold $3.55 billion in global bonds due in 2045, using proceeds to buy back $2 billion worth of costlier global bonds with maturities that ranged from 2024 to 2041. (Reporting by Alonso Soto; Writing by Walter Brandimarte; Editing by Chizu Nomiyama and Jeffrey Benkoe)