Brazil: Enhanced procedure for CRIs and infrastructure debentures

01.07.2013

Effective

immediately

customers of Clearstream Banking1 investing in CRIs (Certificados de Recebiveis Imobiliarios – mortgage-backed securities) and infrastructure debentures must verify that those securities are listed at CETIP and that the CETIP website confirms that the securities comply with Law 12.431/2011.

Such positive verification will eliminate the need for the customer to provide our New Issues desk with a copy of the CRI/debenture deed. The information is available on the CETIP website.

Customers are reminded that foreign investors in CRIs and infrastructure debentures who are not domiciled in tax-haven countries are exempt from withholding tax and from Imposto Sobre Operações Financeiras (IOF tax - Financial Operation Tax) on foreign exchange inflows.

The characteristics of CRIs and infrastructure debentures that qualify them for exemption from tax are presented in the Creation Link Guide - Brazil.

Further information

For further information, customers may contact their Clearstream Banking Relationship Officer.

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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500 (CBF) and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).

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