UPDATE 1-Brazil's Cruzeiro do Sul sells $60 mln in bonds

* Cruzeiro do Sul sells $60 mln in dollar bonds

* Bond sale marks return of Brazilian borrowers to market

* Bank plans to use proceeds to ramp up lending (Recasts to add bank confirmation, comment)

By Guillermo Parra-Bernal and Aluisio Alves

SAO PAULO, June 12 (Reuters) - Banco Cruzeiro do Sul (CZRS3.SA: Quote, Profile, Research), a Brazilian bank specializing in payroll-deductible consumer loans, sold $60 million in two-year dollar-denominated notes in the latest sign international debt capital markets are opening for Brazilian borrowers.

The Sao Paulo-based bank sold the notes at a yield of 9.75 percent, the bank said on Friday. The notes will bear a coupon interest rate of 9 percent.

The lender plans to use proceeds from the sale to ramp up lending as its credit portfolio is producing double-digit growth rates. The Brazilian central bank unexpectedly slashed the benchmark Selic rate to an all-time-low 9.25 percent on Wednesday in a bid to revive credit and stoke growth in Latin America's biggest economy.

Cruzeiro's bond sale marked the return of mid-sized Brazilian lenders to international debt capital markets, which were closed for most borrowers as the turmoil in global credit markets deepened.

Between January and August 2008, weeks before credit markets collapsed, Brazilian mid-sized lenders had raised $1 billion from the sale of debt with maturities of up to two years.