Author: Moema Giovanella
| Published on February 1, 2024, Resolution No. 5.118 of the National Monetary Council – CMN (“CMN Resolution 5118”), brings new restrictions on the backing of the issuance of Agribusiness Receivables Certificates (CRAs) and Real Estate Receivables Certificates (CRIs ), aiming to increase the effectiveness of the CRIs and CRAs market, ensuring that the resources respectively raised are effectively directed to financing the agribusiness and real estate sectors, preserving offers already distributed and requiring distribution registration with the Commission of Securities – CVM already carried out. Among the changes to CMN Resolution 5118, will no longer be allowed the use as collateral for CRIs and CRAs operations of: debt securities whose issuer, debtor, co-debtor or guarantor is (ia) a publicly-held company or a party related to a publicly-held company, except if the main sector of activity of the publicly-held company is the sector real estate or agribusiness, as applicable for the CRI or CRA, respectively; or (ib) financial institution or entity authorized to operate by the Central Bank of Brazil (BACEN), or its related parties; and credit rights arising from operations between related parties or arising from financial operations whose resources are used to reimburse expenses. Additionally, assignment, endorsement and subscription offers involving the institutions and companies referred to in item “ia” above, which retain any risks and benefits, are prohibited. The CVM should soon adopt additional measures to regulate the provisions of the device, noting, however, that CMN Resolution 5118 has already been in force since the date of its publication. Those who wish to access the full Resolution CMN 5118 should access the link below: https://www.bcb.gov.br/estabilidadefinanceira/exibenormativo?tipo=Resolu%C3%A7%C3%A3o%20CMN&numero=5118 |
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| Published on February 1, 2024, Resolution No. 5.118 of the National Monetary Council – CMN (“CMN Resolution 5118”), brings new restrictions on the backing of the issuance of Agribusiness Receivables Certificates (CRAs) and Real Estate Receivables Certificates (CRIs ), aiming to increase the effectiveness of the CRIs and CRAs market, ensuring that the resources respectively raised are effectively directed to financing the agribusiness and real estate sectors, preserving offers already distributed and requiring distribution registration with the Commission of Securities – CVM already carried out. The CVM should soon adopt additional measures to regulate the provisions of the device, noting, however, that CMN Resolution 5118 has already been in force since the date of its publication. |