1 / 8

BRAZILIAN AGRIBUSINESS Financial Instruments

BRAZILIAN AGRIBUSINESS Financial Instruments. DEBT TRANSACTIONS: INSTRUMENTS OF AGRIBUSINESS FINANCING. Agricultural Duplicate NPR Commercial Contracts CD-WARRANT CDA/WA AGRINOTE

sabin
Download Presentation

BRAZILIAN AGRIBUSINESS Financial Instruments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. BRAZILIAN AGRIBUSINESS Financial Instruments

  2. DEBT TRANSACTIONS: INSTRUMENTS OF AGRIBUSINESS FINANCING • Agricultural Duplicate NPR • Commercial ContractsCD-WARRANT • CDA/WAAGRINOTE • Depositary and Cooperatives Font Stock Companies, Limited Liability Companies and Cooperativies • CDCALCACRA • Cooperatives Banks and Credit Cooperativies Securitization and Agribusiness Companies Legal Persons CPR

  3. CPR – CONCEPT AND MODALITIES • Concept: CPR “Certificate of Agricultural Products” is an instrument of credit (bond), by which the Issuer commits to deliver agricultural products in a maturity date - with or without guarantee. • Legal Definition: CPR was established by Law No. 8,929, of August 22, 1994 – as emended by Law No 10,200/01, which added article 4-A to the previous law, establishing the Financial type of CPR. • Modalities: CPR canbeissued in 3 (three) modalities: for productdelivery (“physical”), financial and for exportation. • Issuer: Rural Producers and theirs Associations, including their Cooperatives.

  4. Law No 11.076/2004. CDA – Certificate of Agricultural Deposit; WA – Agricultural Warrant; CDCA –Certificate of Agribusiness Credit Rights; LCA –Agricultural Credit Bill; and CRA – Certificate of Agribusiness Receivables CVM Rule No. 422/2005 - Agrinote (NCA) NEW TITLES OF THE AGRIBUSINESS

  5. NEW TITLES: ISSUERS • Certificate of Agricultural Deposit(CDA): Credit Instruments (bonds)representing a promise of delivery of agricultural products, its by-products, derivatives and residues of economic value, deposited. • Agricultural Warrant (WA):Credit Instrument (bond) that confers to its holder the legal pledge on the described product in the corresponding CDA. • Certificate of Agribusiness Credit Rights(CDCA):shall be exclusively issued by cooperatives of rural producers and other legal persons involved in the activities related to the commercialization, improvement or industrialization of products, as well as agricultural inputs, machinery and implements utilized in the agricultural and cattle raising production.

  6. NEW TITLES: ISSUERS • Agricultural Credit Bill (LCA):shall be exclusively issued by public or private financial institutions. • Certificate of Agricultural Receivables (CRA):shall be exclusively issued by securities companies. • Securities Companies:are non-financial institutions organized as joint-stock companies and have as their corporate purpose the purchase and securitization of such rights and the issuance and placing the Certificates of Agricultural Receivables into the financial and capital market. • Agricultural Commercial Note (NCA - Agrinote): it is the Commercial Promissory Note of public offer issued by corporations, limited liability companies and cooperatives which mainly act in production, commercialization, improvement or industrialization of products or agricultural inputs, or machines and implements used in the agribusiness activities.

  7. NEW TITLES: FINANCIAL ASPECTS • HIGH SPREAD COMPARED WITH LIBOR • Opportunity to increase by virtue of the Selic Tax decrease • THE RETURN REMUNERATE ABOVE THE RISK • The granted Guarantees transform the investment less risky than other investments in the financial market and that also present inferior return. • INVESTMENT ADVANTAGES • Low Credit Risk – Debt linked to the performance beyond innumerable entailed guarantees • Low Legal Risk - Specific Regulation • Favored Taxation

  8. Renato Buranello Heloisa Slav renatoburanello@buranello.com.brheloisaslav@buranello.com.br 55 11 3149-4888 www.buranello.com.br

More Related