Brazil: Provisional measure to stimulate the capital markets

14.08.2014

Effective

immediately

the Brazilian government has postponed the deadline for issuance of the Certificados de Recebiveis Imobiliarios (CRIs - mortgage backed securities) and infrastructure debentures from 31 December 2015 to 31 December 2020.

This is according to the official publication, on 10 July 2014, of Provisional Measure 651/14, aimed at stimulating the local capital markets.

Background

CRIs and infrastructure debentures, which are eligible in Clearstream Banking1, were created to promote a specific funding structure for Brazilian companies and to encourage foreign funding of infrastructure projects in Brazil. As a major incentive, foreign investors in CRIs and infrastructure debentures who are not domiciled in a tax-haven country are exempt from withholding tax and Imposto Sobre Operações Financeiras (IOF tax – Financial Operation Tax) on foreign exchange inflows.

Further information

For details of CRIs and infrastructure debentures and the Brazilian market, please refer to the Creation Link Guide - Brazil.

For further information, customers may contact Clearstream Banking Client Services or their 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).