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(Adds details on total and new debt, issuance throughout)
BRASILIA, Dec 27 (Reuters) – Brazil’s federal public debt saw a 2.48% surge in November, marked by both domestic issuances and the government’s first sustainable bonds in the international market, the Treasury said on Wednesday.
This increase propelled the total debt stock to 6.325 trillion reais ($1.31 trillion), but still below the lower limit of the Treasury’s targeted range of 6.4-6.8 trillion reais for the year.
Net debt issuance in November reached R$ 109. 26 billion, of which R$ 99. 94 billion came from net issuance of domestic debt and R$ 9. 32 billion from external debt.
In a presentation, the Treasury highlighted accelerated market conditions and increased risk appetite during the month, supported by emerging equity markets and lower interest rates. He noted that this opportune environment had led the government to raise $2 billion with its first issuance. of “green” bonds.
Further contributing to the debt growth in November was the payment of 43.84 billion reais in interest, bringing the year-to-date tally to 553.55 billion reais.
The average interest rate on domestic federal debt, which accounts for 96% of the total, fell from 11. 84% in October to 11. 68% in November.
According to the Treasury, its liquidity reserve, designed to offer flexibility in debt management amid market volatility, saw a 11.43% uptick from the previous month, to 908.86 billion reais.
This reserve is deemed sufficient to cover debt maturities for a forward-looking period of 8.34 months, it added. ($1 = 4.8245 reais) (Reporting by Marcela Ayres; Editing by Emelia Sithole-Matarise)