Obligation Brazillian Bonds 7.125% ( US105756BK57 ) en USD

Brazillian Bonds

103.96 % ▼

Bresil

US105756BK57 ( en USD )

7.125% par an ( paiement semestriel )

19/01/2037

Prospectus brochure de l'obligation Brazil Bonds US105756BK57 en USD 7.125%, échéance 19/01/2037

1 000 USD

3 025 043 000 USD

105756BK5

20/07/2025 ( Dans 82 jours )

Les Brazil Bonds sont des obligations émises par le gouvernement brésilien ou des entités brésiliennes, offrant aux investisseurs une exposition au marché brésilien et un potentiel de rendement, assorti de risques liés à la dette souveraine et aux fluctuations de change.

L'Obligation émise par Brazillian Bonds ( Bresil ) , en USD, avec le code ISIN US105756BK57, paye un coupon de 7.125% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 19/01/2037

Prospectus Supplement
424B5 1 d424b5.htm PROSPECTUS SUPPLEMENT
Table of Contents
Filed Pursuant to Rule 424(b)(5)
File No. 333-129000
PROSPECTUS SUPPLEMENT
(To Prospectus dated October 24, 2005)
US$500,000,000

Federative Republic of Brazil
7.125% Global Bonds due 2037

Brazil will pay interest on the global bonds on January 20 and July 20 of each year, commencing on July 20,
2006. The global bonds will mature on January 20, 2037.
The global bonds will be a further issuance of, and will be consolidated to form a single series with, the US
$1,000,000,000 aggregate principal amount of Brazil's outstanding 7.125% Global Bonds due 2037 that were
previously issued on January 18, 2006. The total aggregate principal amount of the previously issued global
bonds and the global bonds now being issued will be US$1,500,000,000.
The global bonds will be designated Collective Action Securities and, as such, will contain provisions regarding
acceleration and future modifications to their terms that differ from those applicable to much of Brazil's
outstanding public external indebtedness. Under these provisions, which are described in the sections entitled
"Description of the Global Bonds--Default; Acceleration of Maturity" and "--Amendments and Waivers" in this
prospectus supplement and "Collective Action Securities" in the accompanying prospectus, Brazil may amend
the payment provisions of the global bonds and certain other terms with the consent of the holders of 75% of the
aggregate principal amount of the outstanding global bonds.
Application has been made to list the global bonds on the Luxembourg Stock Exchange and to have the global
bonds, together with the previously issued global bonds, trade on the Euro MTF Market, the alternative market of
the Luxembourg Stock Exchange.
See " Risk Factors" beginning on page S-7 to read about certain risk factors you should consider
before investing in the global bonds.
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Neither the Securities and Exchange Commission nor any other regulatory body has approved or
disapproved of these securities or passed upon the accuracy or adequacy of this prospectus supplement or
the accompanying prospectus. Any representation to the contrary is a criminal offense.

Per Global Bond
Total
Public offering price(1)

103.747%
US$518,735,000
Underwriting discount

0.300%
US$1,500,000
Proceeds, before expenses, to Brazil(1)

103.447%
US$517,235,000
(1) Plus accrued interest totaling US$6,432,291.67, or US$12.86 per US$1,000 principal amount of global
bonds, from January 18, 2006 to March 23, 2006, the date Brazil expects to deliver the global bonds offered
by this prospectus supplement, and any additional interest, if any, from March 23, 2006.
The global bonds will be ready for delivery in book-entry form only through the facilities of The Depository
Trust Company, or DTC, the Euroclear System and Clearstream Banking, Luxembourg, société anonyme, against
payment on or about March 23, 2006.

Joint Lead Managers and Joint Bookrunners
HSBC
JPMorgan

Co-Manager
Itaú
The date of this prospectus supplement is March 16, 2006
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Table of Contents
You should rely only on the information contained in or incorporated by reference in this prospectus
supplement and the accompanying prospectus. Brazil has not authorized anyone else to provide you with
different information. Brazil is not making an offer of these securities in any state where the offer is not
permitted. You should not rely on any other information in making your investment decision.
This prospectus can only be used for the purposes for which it has been published.
TABLE OF CONTENTS
Prospectus Supplement

Page
Summary of the Offering

S-2
Risk Factors

S-6
Table of References

S-8
About This Prospectus Supplement

S-9
Forward-Looking Statements
S-10
Use of Proceeds
S-10
Recent Developments
S-11
Description of the Global Bonds
S-15
Global Clearance and Settlement
S-21
Taxation
S-22
Underwriting
S-27
Validity of the Global Bonds
S-30
Official Statements and Documents
S-30
General Information
S-31
Prospectus

Where You Can Find More Information

2
Data Dissemination

2
Use of Proceeds

3
Debt Securities

3
Collective Action Securities

14
Warrants

17
Governing Law

17
Arbitration and Enforceability

18
Plan of Distribution

19
Validity of the Securities

20
Official Statements

21
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Authorized Representative

21

S-1
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Table of Contents
SUMMARY OF THE OFFERING
This summary highlights information contained elsewhere in this prospectus supplement and the accompanying
prospectus. It is not complete and may not contain all of the information that you should consider before
investing in the global bonds. You should read this entire prospectus supplement and the accompanying
prospectus carefully.
The Issuer
Overview
Brazil is the fifth largest country in the world and occupies nearly half the land area of South America. Brazil
shares a border with every country in South America except Chile and Ecuador. The capital of Brazil is Brasília,
and the official language is Portuguese. On December 31, 2004, Brazil's estimated population was 182.7 million.
Brazil is a federative republic with broad powers granted to the federal Government. Brazil is officially divided
into five regions consisting of 26 States and the Federal District, where Brazil's capital, Brasília, is located.
Government
The Federal Constitution provides for three independent branches of government: an executive branch headed by
the President; a legislative branch consisting of the bicameral National Congress, composed of the Chamber of
Deputies and the Senate; and a judicial branch consisting of the Federal Supreme Court and lower federal and
State courts.
Under the Constitution, the President is elected by direct vote. A constitutional amendment adopted in June 1997
permits the re-election for a second term of the President and certain other elected officials. The President's
powers include the right to appoint ministers and key executives in selected administrative posts.
The legislative branch of government consists of a bicameral National Congress composed of the Senate and the
Chamber of Deputies. The Senate is composed of 81 Senators, elected for staggered eight-year terms, and the
Chamber of Deputies has 513 Deputies, elected for concurrent four-year terms. Each State and the Federal
District is entitled to three Senators. The number of Deputies is based on a proportional representation system
weighted in favor of the less populated States which, as the population increases in the larger States, assures the
smaller States an important role in the National Congress.
The judicial power is exercised by the Federal Supreme Court (composed of 11 Justices), the Superior Court of
Justice (composed of 33 Justices), the Federal Regional Courts (appeals courts), military courts, labor courts,
electoral courts and the several lower federal courts. The Federal Supreme Court, whose members are appointed
for life by the President, has ultimate appellate jurisdiction over decisions rendered by lower federal and State
courts on Constitutional matters.
Following two decades of military governments, in 1985 Brazil made a successful transition to civilian authority
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and democratic government. A new Brazilian Constitution was adopted in 1988. In 1989, direct presidential
elections were held for the first time in 29 years. After winning a runoff election with 61% of the vote on
October 27, 2002, Luiz Inácio Lula da Silva assumed the presidency of Brazil on January 1, 2003. As President,
Mr. da Silva has initiated a series of social programs, including a "Zero Hunger" campaign, which is intended to
eradicate famine and address poverty in the country, a "Bolsa Família" program that provides assistance to
impoverished families and a "First Job" program aimed at facilitating young persons' entry into the labor market.
He has also secured reforms of the tax, pension and judicial systems, moved to establish a

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Table of Contents
framework for public-private partnerships, introduced a regulatory framework for investment in, among others,
the electricity sector and secured amendments to the country's bankruptcy law. Finally, the da Silva
administration's economic policy has been characterized by fiscal discipline, a floating exchange rate and
inflation targeting. Among the da Silva administration's first initiatives was an increase in the consolidated public
sector primary surplus target from 3.75% of real gross domestic product ("GDP") in 2002 to 4.25% of GDP in
each of 2003, 2004 and 2005. On September 22, 2004, the Government announced that it had raised its primary
surplus target for 2004 to 4.5% of GDP from 4.25% of GDP due to better than expected fiscal revenues. The
Government maintained its 2005 primary surplus target of 4.25% of GDP. The Government's primary surplus
target for 2006 is 4.25% of GDP.
President da Silva's Minister of Finance is Antonio Palocci Filho, who has served in that position since
January 1, 2003.
Selected Brazilian Economic Indicators

2000
2001
2002
2003
2004
The Economy

Gross Domestic Product
("GDP"):

(in billions of constant
R
R
R
R
R
2004 Brazilian reais)

$1,621.5
$1,642.7
$1,674.4
$1,683.5
$1,766.6
(GDP at current prices
US
US
US
US
US
in US$ billions)(1)

$602.2
$509.8
$459.4
$506.8
$604.0
Real GDP Growth (decline)(2)
4.4%
1.3%
1.9%
0.5%
4.9%
Population (millions)

169.6
175.1
177.6
180.2
182.7
GDP Per Capita(3)
US
US
US
US
US

$3,515.9
$2,932.9
$2,604.3
$2,831.4
$3,326.1
Unemployment Rate(4)

7.1%
6.2%
7.1%
12.3%
11.5%
IGP-DI (rate of change)(5)

9.8%
10.4%
26.4%
7.7%
12.1%
Nominal Devaluation Rate(6)
9.3%
18.7%
52.3%
(18.2)%
(8.1)%
Domestic Real Interest Rate(7)
7.0%
6.3%
(5.7)%
14.6%
3.7%
Balance of Payments (in US$
billions)

Exports

55.1
58.2
60.4
73.1
96.5
Imports

55.8
55.6
47.2
48.3
62.8
Current Account

(24.2)
(23.2)
(7.6)
4.2
11.7
Capital and Financial Account
(net)

19.3
27.1
8.0
5.1
(7.3)
Change in Total Reserves

(2.3)
3.3
0.3
8.5
2.2
Total Official Reserves

33.0
35.9
37.8
49.3
52.9
Public Finance

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Financial Surplus (Deficit) as
% of GDP(8)

(3.6)%
(3.5)%
(4.3)%
(5.1)%
(2.7)%
Primary Surplus (Deficit) as %
of GDP(9)

3.5
3.7
4.0
4.3
4.6
Public Debt (in billions)

Gross Internal Debt (Nominal)
US
US
US
US
US
(10)

$322.7
$319.9
$256.0
$347.1
$418.8
Gross External Debt (Nominal)
(11)

86.7
82.9
80.9
84.8
83.1
Public Debt as % of Nominal
GDP

Net Internal Debt

39.1%
42.2%
41.2%
46.7%
44.3%
Net External Debt(12)
9.6
10.4
14.3
12.0
7.5
Total Public Debt (Nominal)
US
US
US
US
US
(13)

$409.4
$402.8
$336.9
$431.9
$501.9

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(1) Converted into U.S. dollars based on the weighted average exchange rate for each year.
(2) Calculated based upon constant average 2004 Brazilian reais.
(3) Not adjusted for purchasing power parity.
(4) Average annual unemployment rate of the metropolitan regions of Belo Horizonte, Porto Alegre, Recife, Rio
de Janeiro, Salvador and São Paulo. The methodology used by Instituto Brasileiro de Geografia e Estatística
to determine the average unemployment rate was changed in 2003. The average unemployment rates shown
for 2000 through 2002 were determined using the methodology in effect prior to 2003. If the new
methodology had been in effect in 2002, the average unemployment rate that year would have been 11.7%.
(5) The General Price Index-Domestic Supply (Índice Geral de Preços-Disponibilidade Interna, or "IGP-DI") is
one indicator of inflation. While many inflation indicators are used in Brazil, the IGP-DI, calculated by the
Getúlio Vargas Foundation, an independent research organization, is one of the most widely utilized indices.
(6) Year-on-year percentage appreciation of the U.S. dollar against the Brazilian real (sell side).
(7) Brazilian federal treasury securities deflated by the IGP-DI and adjusted at each month-end to denote real
annual yield.
(8) Financial results represent the difference between the consolidated public sector debt in one period and the
consolidated public sector debt in the previous period, excluding the effects of the Government's
privatization program and the effect of exchange rate fluctuations on the debt levels between periods.
(9) Primary results represent Government revenues less Government expenditures, excluding interest
expenditures on public debt.
(10) Presents debt on a consolidated basis, which is calculated as the gross internal debt less credits between
governmental entities.
(11) Not including external private debt. Consolidated external private debt as of December 31, 2004 was $60.1
billion.
(12) Gross external debt less total reserves.
(13) Consolidated gross public sector debt.
Sources: Fundação Instituto Brasileiro de Geografia e Estatística ("IBGE"); Getúlio Vargas Foundation;
Central Bank
The following summary is qualified in its entirety by, and should be read in conjunction with, the more detailed
information appearing elsewhere in this prospectus supplement and the accompanying prospectus.
The Global Bonds
Issuer

Federative Republic of Brazil
Title of Security

7.125% Global Bonds due 2037
Aggregate Principal Amount

US$500,000,000
Maturity Date

January 20, 2037
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Interest Rate
7.125% per annum, computed on the basis of a 360-day year of twelve

30-day months
Interest Payment Dates

January 20 and July 20 of each year, starting July 20, 2006
Price to Public
103.747% of the principal amount, plus accrued interest from January
18, 2006, the date on which the previously issued global bonds were

issued.

S-4
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Document Outline

sec.gov
- #1">Prospectus Supplement