BrazilStructured Finance Credit Securities

MARCELO RUIZ RODRIGUES DOS SANTOS

Brazilian Lawyer

Introduction

The Brazilian credit market has grown significantly in recent years. Various factors have contributed to this, including the creation of a diverse and flexible set of credit securities and the development of the country’s structured finance market.

A solid legal and regulatory framework for credit securities combined with the practical application of financial technology have contributed to making the domestic debt capital markets an efficient alternative to traditional forms of financing using bank debt.

General Credit Securities

• Securities that are not connected by law or regulation to any specific sector:

– Bank credit bill;

(Cédula de Crédito Bancário,CCB)

– Certificate of bank credit bills;

(Certificado de Cédulas de Crédito Bancário, CCCB)

– Shares of receivables investment funds.

(Cotas de fundos de investimento em direitos creditórios, FIDC).

Real Estate Securities

– Mortgage note;

(Letra Hipotecária, LH)

– Real estate note;

(Letra de Crédito Imobiliário, LCI)

– Certificate of real estate receivables; and

(Certificado de Recebíveis Imobiliários, CRI)

– Real estate credit bill.

(Cédula de Crédito Imobiliário, CCI).

Agribusiness Securities

– Rural produce bill;

(Cédula de Produto Rural, CPR)

– Certificate of deposit of agricultural produce; (Certificado de Depósito Agropecuário, CDA)

– Agricultural produce warrant;

(Warrant Agropecuário,WA)

Agribusiness Securities

– Certificate of agribusiness credit rights;

(Certificado de Direitos Creditórios do Agronegócio, CDCA)

– Agribusiness credit note; and

(Letra de Crédito do Agronegócio, LCA)

– Certificate of agribusiness receivables.

(Certificado de Recebíveis do Agronegócio, CRA)

Comparison of General Credit Securities

Comparison of Real Estate Credit Securities

(cont.)

Comparison of Agribusiness Credit Securities

(cont.)

Regulation