The Brazilian Development Bank (BNDES) again tapped the international market by raising $1.5 billion through a bond issue Monday. The bank seized the good moment for Brazilian fixed-income assets and raised funds at a lower cost than expected. The transaction was divided into two tranches. In one, the bank raised $1 billion in bonds maturing in 2019. In the second tranche, the BNDES raised $500 million with a bond reopening maturing in 2023. It was the second bond issue made by the bank this year. In January, the BNDES raised €650 million with bonds targeted for the European market. 

In the latest transaction, with bonds denominated in dollars, about 70% of the demand came from investors in North America. Another 20% came from Europe and the rest came from the Asian market. The BNDES declined to comment because it’s in a "quiet period."