Obligation Brazilia 12.5% ( US105756BL31 ) en BRL

Brazilia

100 % ▼

Bresil

US105756BL31 ( en BRL )

12.5% par an ( paiement semestriel )

04/01/2022 - Obligation échue

Prospectus brochure de l'obligation Brazil US105756BL31 en BRL 12.5%, échue

250 000 BRL

3 000 000 000 BRL

105756BL3

Le Brésil est un pays d'Amérique du Sud, le plus grand et le plus peuplé du continent, possédant une grande diversité biologique et culturelle.

L'analyse d'une obligation financière, identifiée par le code ISIN US105756BL31 et le code CUSIP 105756BL3, révèle un instrument de dette souveraine émis par la République Fédérative du Brésil, un acteur économique majeur sur la scène internationale, dont le pays d'émission est le Brésil même, caractérisée par un prix actuel sur le marché de 100% et libellée en Reais Brésiliens (BRL), offrant un taux d'intérêt nominal de 12.5% avec une fréquence de paiement bi-annuelle, pour une taille totale d'émission s'élevant à 3 000 000 000 (trois milliards) de BRL et une taille minimale d'achat fixée à 250 000 BRL, cette obligation étant arrivée à maturité le 4 janvier 2022 et ayant été intégralement remboursée.

Final Prospectus Supplement
424B5 1 d424b5.htm FINAL PROSPECTUS SUPPLEMENT
Table of Contents
FILED PURSUANT TO RULE 424(B)(5)
FILE No. 333-129000
P R O S P E C T U S S U P P L E M E N T
(To Prospectus dated October 24, 2005)
R$1,600,000,000

Federative Republic of Brazil
12.50% Global BRL Bonds due 2022
Payable in U.S. dollars

Brazil will pay interest on the global bonds on January 5 and July 5 of each year, commencing on January 5,
2007. Principal and interest will be translated into, and payment of principal and interest will be made in, United
States dollars. The global bonds will mature on January 5, 2022.
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 trade on the Euro MTF Market.
See " Risk Factors" beginning on page S-7 to read about certain risk factors you should consider before
investing in the global bonds.
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.

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Final Prospectus Supplement

Per Global
Per Global Bond in
Total in

Bond

U.S. Dollars

U.S. Dollars
Public offering price(1) (2)
US

97.563%
US$ 113,318.85
$ 725,240,661.60
Underwriting discount
US

0.300%
US$
348.45
$
2,230,068.76
Proceeds, before expenses, to Brazil
US

97.263%
US$ 112,970.40
$ 723,010,592.84
(1) Purchasers will make the payment of the public offering price in U.S. dollars based on an exchange rate for
the conversion of Brazilian reais into U.S. dollars of R$2.1524 per U.S. $1.00. The per global bond amount
is R$250,000.
(2) Plus accrued interest, if any, from September 13, 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 September 13, 2006.

Joint Lead Managers and Joint Bookrunners
Citigroup
JPMorgan

Co-Manager
Pactual
The date of this prospectus supplement is September 6, 2006.
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Final Prospectus Supplement
Table of Contents
In making your investment decision, 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.
This prospectus supplement can only be used for the purposes for which it has been published.
TABLE OF CONTENTS

Page
Prospectus Supplement

Summary

S-2
Risk Factors

S-7
Table of References
S-10
About This Prospectus Supplement
S-11
Forward-Looking Statements
S-12
Use of Proceeds
S-13
Certain Conventions
S-13
Recent Developments
S-15
Description of the Global Bonds
S-18
Global Clearance and Settlement
S-25
Taxation
S-29
Underwriting
S-34
Validity of the Global Bonds
S-36
Official Statements and Documents
S-36
General Information
S-37
Prospectus

Where You Can Find More Information

2
Data Dissemination

2
Use of Proceeds

2
Debt Securities

3
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Final Prospectus Supplement
Collective Action Securities

11
Warrants

13
Governing Law

14
Arbitration and Enforceability

14
Plan of Distribution

15
Validity of the Securities

16
Official Statements

16
Authorized Representative

16

S-1
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Final Prospectus Supplement
Table of Contents
SUMMARY
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, 2005, Brazil's estimated population was 185.3 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

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labor market. He has also secured reforms of the tax, pension and judicial systems, moved to establish a
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 has maintained its 2006 primary surplus target of 4.25% of GDP.
President da Silva's Minister of Finance is Guido Mantega, who has served in that position since March 28,
2006.
SELECTED BRAZILIAN ECONOMIC INDICATORS

2001

2002

2003

2004

2005

The Economy

Gross Domestic
Product
("GDP"):

(in billions
of constant
2005 reais)
R$1,761.6
R$1,795.6
R$1,805.3
R$1,894.5
R$ 1,937.6
(GDP at
current
prices in US
US
US
US
US
US
$ billions)(1)
$
509.8
$
459.4
$
506.8
$
604.0
$
796.3
Real GDP
Growth
(decline)(2)

1.3%

1.9%

0.5%

4.9%

2.3%
Population
(millions)

175.1

177.6

180.2

182.7

185.3
GDP Per Capita
US
US
US
US
US
(3)

$ 2,932.9
$ 2,604.3
$ 2,831.4
$ 3,326.1
$ 4,323.31
Unemployment
Rate(4)

10.6%

10.5%

10.9%

9.6%

8.3%
IGP-DI (rate of
change)(5)

10.4%

26.4%

7.7%

12.1%

1.2%
Nominal
Devaluation
Rate(6)

18.7%

52.3%

(18.2)

(8.1)

(11.8)
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Domestic Real
Interest Rate(7)

6.2%

(5.8)%

14.5%

3.6%

17.6%
Balance of
Payments (in
US$ billions)

Exports

58.2

60.4

73.1

96.5

118.3
Imports

55.6

47.2

48.3

62.8

73.6
Current
Account

(23.2)

(7.6)

4.2

11.7

14.2
Capital and
Financial
Account (net)

27.1

8.0

5.1

(7.5)

(9.6)
Change in
Total Reserves

3.3

0.3

8.5

2.2

4.3
Total Official
Reserves

35.9

37.8

49.3

52.9

53.8
Public Finance

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

(3.6)%

(4.6)%

(5.1)%

(2.7)%

(3.3)%
Primary
Surplus
(Deficit) as %
of GDP(9)

3.6

3.9

4.3

4.6

4.8
Public Debt
(in billions)

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

$
319.9
$
256.0
$
347.1
$
417.6
$
538.5
Gross External
Debt
(Nominal)(11)

84.5

82.7

86.0

81.3

76.5
Public Debt as
% of Nominal
GDP

74.7%

75.4%

78.4%

71.5%

74.1%
Net
Internal
Debt

59.1%

57.0%

62.8%

59.9%

64.9%
Net
External
Debt(12)

15.6%

18.4%

15.6%

11.6%

9.2%
Total Public
Debt (Nominal)
US
US
US
US
US
(13)

$
404.3
$
338.6
$
433.1
$
498.8
$
615.0
(1) Converted into dollars based on the weighted average exchange rate for each year.
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(2) Calculated based upon constant average 2005 reais.
(3) Not adjusted for purchasing power parity.

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(4) Unemployment in the metropolitan areas of Rio de Janeiro, São Paulo, Belo Horizonte, Porto Alegre,
Salvador and Recife at the end of the relevant period.
(5) 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 dollar against the 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, 2005 was $57.2
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

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Document Outline

sec.gov
- #1">Final Prospectus Supplement