The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Deals of the year: Latin America

Western Europe  | Emerging Europe | Asia | North America

Best sovereign bond


Type of deal: 43-month bond

Deal size: $1 billion

Date: April 2003

Advisers: UBS Warburg, Merrill Lynch

Latin debt had a banner year in 2003 and there's no doubt which deal set the ball rolling. When Brazil issued its $1 billion 2007 bond at the end of April, it set the tone for the entire year.

The bond was a blowout: the leads received $7.3 billion in orders from 427 different participants in just 90 minutes. Of these would-be investors, 89 went away empty-handed, with no bonds at all. When they looked to other parts of Brazil's curve to try to pick up debt on the secondary market, they found something astonishing: far from widening in response to the $1 billion of new supply, the entire curve had tightened in by about 25 basis points overnight.

The maturity of the bond was unusual. At three years and seven months, it was very short-dated for a large sovereign issuance, and didn't mature in the normal multiple of one year. Also unusual were the collective action clauses that Brazil included in the bond: at 85%, they were 10 percentage points higher than the 75% that the markets had seemed to accept as standard.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree