The National Monetary Council (CMN) has issued the Resolution No. 5,118 of February 1, 2024 (Resolution), making adjustments for the issuance of Real Estate Receivables Certificates (CRI) and Agribusiness Receivables Certificates (CRA).

According to the Resolution, CRIs and CRAs may not contain as backing:

(a) debt securities (i.e. debentures, promissory notes, commercial notes and others) whose issuer, debtor, co-debtor or guarantor is (i) a publicly-held company or a party related to a publicly-held company, except if the main sector in which the publicly-held company operates is real estate or agribusiness, as the case may be, or (ii) is a financial institution or entity authorized to operate by Brazilian Central Bank, or its related parties; and

(b) credit rights arising from transactions between related parties or arising from financial transactions whose resources are used to reimburse expenses.

Taking into account the IR exemption that these securities have, in a joint statement the Ministry of Finance and the Brazilian Central Bank announced that the purpose of the resolution was to increase the effectiveness of public policy in supporting the real estate and agribusiness sectors, so that the funds raised are directed to financing these activities and contribute to a more robust credit market.