Capital Markets

Debentures are typically used for medium- to long-term funding. They pay interest at a fixed or floating rate, or can be pegged to inflation. The goal is to obtain funds for investment or to lengthen the company’s debt maturity profile.

Promissory notes are typically short-term debt instruments and cannot be acquired in installments. In Brazil most PNs pay interest pegged to the interbank rate (CDI). PNs are often used as a bridge loan for long-term financing.

CRAs are used to finance the purchase of inputs or feedstocks and other agribusiness transactions. They usually pay interest pegged to the interbank rate (CDI) or an inflation index. The main benefit of CRAs is debt profile enhancement via tax exemption for individual investors.

CRIs are mortgage-backed securities used to raise funds to finance real estate transactions, such as rentals, sales and purchases, for example. They usually pay interest pegged to the interbank rate (CDI) or an inflation index. The main benefit of CRIs is debt profile enhancement via tax exemption for individual investors.

FIDCs are used by companies in Brazil to raise capital by securitizing receivables such as checks, rent, credit card debt, auto loans and similar assets.