Capital Markets Insight: International Bonds as an Alternative to Debentures for Brazilian Issuers

Domestic debt issuance is a widely used funding tool for Brazilian companies and is largely dominated by debentures. Brazil’s fixed income market has expanded significantly, with companies issuing hundreds of billions of Brazilian reais (BRL) in recent years. On the other hand, despite the undisputed dominance of debentures as the preferred funding domestic tool, international bonds have also served as a complementary—and, in some cases, alternative—funding option for Brazilian issuers. In the first quarter of 2025, Brazilian companies issued USD 11.1 billion in international bonds in 12 deals—the highest first quarter volume since 2014. In 2024, Brazilian issuers raised approximately USD 21 billion through international bond issuances, surpassing the USD 16.1 billion raised in 2023 and reflecting a continued increase from USD 10.7 billion in 2022. These numbers highlight a clear and consistent upward trend in international bond issuance by Brazilian companies.

This article provides a practical comparative analysis of the key factors that companies should consider when choosing between issuing debentures locally and issuing bonds internationally, with a focus on the regulatory framework applicable in Brazil and in the U.S. and European markets.