Banco BOCOM BBM operates in the debt capital markets (DCM) by originating, structuring and distributing debt instruments with the aim of offering clients a differentiated funding alternative and enhancing their debt profile.
PRODUCTS AND SERVICES
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.
BOCOM BBM’s role and growth in this market
Recognized for tradition and excellence, we are above all dedicated to offering the best solutions in credit and financial services for corporate clients established in Brazil.
Our financial service offering includes securities structuring and distribution among others. Continuously expanding the scope of our financial services and products is a priority of our growth strategy. In 2018 we coordinated issues totaling R$1.470 billion, of which R$1.350 billion in debentures and promissory notes, and R$120 million in CRAs. Our revenue from securities structuring and distribution rose more than 153% year over year.