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- 🐼 The name’s bond ... Panda bond
🐼 The name’s bond ... Panda bond
Brazil is eyeing so-called ‘panda bonds’ to diversify its debt profile. The IOF debacle has offered the government a chance to improve the fiscal outlook, but not without a significant dose of pain. We look back at 20 years of the ‘mensalão’ scandal.
Gustavo Ribeiro & Letícia Arcoverde
June 06, 2025
MARKETS
A way to diversify Brazil’s debt profile
Treasury Secretary Rogério Ceron says fiscal concerns will not dry out appetite for Brazilian bonds. Photo: Washington Costa/MF
Brazil is exploring a potential sovereign bond issuance in China’s domestic market, in a move that could diversify its foreign capital sources and further solidify ties with its largest trading partner. Colloquially referred to as “panda bonds,” these are debt securities denominated in Chinese yuan (RMB), issued by overseas companies, and sold to investors within mainland China.
The idea has been floated for months. In November 2024, Tatiana Rosito, the Finance Ministry’s international affairs secretary, described panda bonds as an “attractive opportunity” during a forum with Chinese executives in São Paulo.
Rogério Ceron, Brazil’s treasury secretary, has since confirmed that the proposal remains on the table. Speaking to Bloomberg, Ceron emphasized the exploratory nature of the initiative: “There’s a learning curve and funding costs to evaluate,” he said, noting that no decision or timetable has been set …
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