(Bloomberg) -- Brazil tapped debt markets for the second time in less than three months, holding a record bond offering and joining a slew of developing nations that sold new notes at the start of the year. 

Latin America’s largest economy offered $2.25 billion in notes due in 2034 and another $2.25 billion in bonds maturing in 2054 to yield 6.35% and 7.15% each, according to people familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.

The sale comes as several developing-nation borrowers rush to issue hard-currency notes. On Monday alone, Saudi Arabia’s sovereign wealth fund was selling three tranches of US dollar-denominated bonds, while Ivory Coast began the process of marketing a eurobond. Mexico, Chile and Hungary are among emerging-market sovereigns which have already tapped markets in 2024, even as investors ditch risk assets amid a repricing of US interest rate odds and disappointing data from China. 

“Brazil is an opportunistic seller and it’s taking advantage of tight spreads and investor appetite for new issuance,” said William Snead, an analyst at Banco Bilbao Vizcaya Argentaria SA in New York.

Read More: Emerging-Market Debt Sales Take Off, Lifting High-Rated Bonds

Spreads on Brazil’s notes due in 2033 have tightened more than three basis points since the start to the year, amid a broader narrowing in the extra yield investors demand to own dollar-denominated bonds of developing-nation governments.

ESG Plans

Brazil’s last international debt sale happened in November 2023, when the country issued its first ever sustainable bond, intended to support President Luiz Inacio Lula da Silva’s environmental and social agenda. The operation priced $2 billion in notes due in 2031 to yield 6.5%. Brazil also sold $2.25 billion of 2033 notes last year, with a yield of 6.15% in a deal that saw high investor demand. 

The government plans to issue ESG bonds every year, according to a person familiar with the matter, who added that the next sale will only happen after the nation’s Treasury publishes reports on the impact of the first sale. That is expected to happen after March. 

The ESG notes will be sold in addition to regular sovereign issuances, which signals Brazil will tap international markets more often in 2024, according to the person, who asked not to be identified because the matter isn’t public. 

Brazil already has enough dollars to cover all of 2024 maturities, according the Treasury. The proceeds of regular bond sales this year will be used to pay for 2025 commitments, which total between $7 billion and $8 billion.

--With assistance from Ezra Fieser and Esteban Duarte.

(Updates with details on offering in second paragraph.)

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