Minister of Finance states that the measure aims to strengthen the presence of Brazilian companies in China
The Minister of Finance, , stated this Wednesday (June 24, 2026) that Brazil will issue debt bonds in Chinese currency – the so-called Panda Bonds – for the first time. The announcement was made during the Brazil-China Forum on Green Finance held in Shanghai.
During his speech at the event, Durigan declared that the objective of the measure is to strengthen the presence of Brazilian companies in the Chinese market. The minister pointed to a convergence of ideas between the Brazilian and Chinese governments, which value the sovereignty of their people. “We believe and I think like China believes, when we have sovereignty it is the sovereignty of our people and then we are deciding the future by sharing our objectives”disse Durigan.
The “defense of sovereignty” is one of the main themes of the Brazilian government for this year’s elections. Planalto tries to make a statement based on US tariffs and the proximity of the 2nd place candidate in the polls, the pre-candidate and senator (PL-RJ), to the US administration.
The idea behind issuing bonds in yuan is to diversify government financing models, which are mostly done in reais or dollars. In April, the government once again issued bonds in euro for the first time in 12 years, signaling its desire for new sources of funding.
WHAT ARE “PANDA BONDS”
The issuance of bonds in yuan is one of the main objectives of Durigan’s trip to China. How the Poder360the matter was brought forward about two weeks ago.
In Shanghai, Durigan did not provide any further details about the operation other than officially announcing the issuance. The details should be expected in the coming days, when the minister travels to Beijing.
On Thursday (June 25), Durigan will deliver a letter of intent from the National Treasury to the People’s Bank of China – the Chinese equivalent of the Central Bank – to formalize the Brazilian government’s interest in issuing sovereign bonds in yuan for the Chinese market.
Panda Bonds are bonds issued by foreign companies or countries in yuan. It has this name because securities in currencies outside the dollar and euro zone usually receive a nomenclature in reference to distinctive elements of the country. In the Chinese case, the panda.
The main advantages of issuing Panda Bonds are:
- easier access to the Chinese bond market and institutional investors from China;
- diversification of the investor base, trusting in the robustness of the Chinese economy to provide an alternative to the dollar and the euro;
- relatively low issuance interest rate (historically 1.98% to 4.5%).
More than a dozen countries and companies have already issued debt securities in yuan. In Brazil, the pioneer of Panda Bonds was Suzano, which carried out its first operation of the type in 2024. At the time, it raised 1.2 billion yuan (around US$168 million) with a maturity of 3 years and an annual rate of 2.80%.
