Brazil is preparing to issue its first sovereign bond denominated in Chinese renminbi, known as a panda bond, as part of President Luiz Inácio Lula da Silva's strategy to deepen economic ties with China.

The initiative aims to diversify Brazil's funding sources, boost trade relationships, and attract greater international investment.

The government also plans to re-enter the eurobond market and continue issuing sustainable bonds in dollars.

However, investor skepticism persists due to concerns over Brazil's fiscal management and rising public debt.