BANCO CENTRAL DO BRASIL FOCUS

Transcription

1 BANCO CENTRAL DO BRASIL FOCUS June 13, 2000 Registered offerings of securities in the Brazilian Securities and Exchange Commission (CVM) reached R$37,462.1 million in 2000, as of June 13, 2000, led by Brazilian Depositary Receipts (BDR), Secondary Offerings, Corporate Bonds/ Convertibles and Commercial Papers (Table 1). Registration of Motion Pictures Investment Certificates (CINE), a security issued with fiscal benefits to fund production and distribution of Brazilian films, totaled R$53.8 million in the year. A follow-up report on the evolution of the securities market for Commercial Papers, Corporate Bonds/Convertibles and Motion Picture Certificates is presented below. Table 1 Securities Offerings in 2000 CVM registrations as of June 13, 2000 TYPE OF OFFERING QUANTITY TOTAL AMOUNT (R$) Millions STOCKS SUBSCRIPTION WARRANTS - - BRAZILIAN DEPOSITARY RECEIPTS 1 23,825.5 ELECTRICITY FORWARD CERTIFICATES - - DOMESTIC DEPOSITARY RECEIPTS - - MOTION PICTURE INVESTMENT CERTIFICATES COLLECTIVE INVESTMENT PARTNERSHIP CONTRACTS CORPORATE BONDS/CONVERTIBLES 14 3,047.1 DEPOSITARY RECEIPTS OF BRAZILIAN COMPANIES LISTED ABROAD 7 - COMMERCIAL PAPERS 21 2,807.0 SHARES OF REAL ESTATE FUNDS SECONDARY OFFERINGS 16 6,880.8 OTHER WARRANTS - - OTHER - - TOTAL OFFERINGS REGISTERED THIS YEAR ,462.1

2 Monthly average of publicly issued Commercial Papers in the Settlement and Custody Center of Government and Private Securities (Cetip) surged by 45% in May 2000 y-o-y. Compared to il 2000, total balance outstanding in the market shrank by 13.9% to R$3.4 billion, the lowest level since July 19 (Figure 1). The Brazilian Securities and Exchange Commission (CVM) authorizes issues of minimum maturity of with maximum tenure restricted to 180 days for closely-held limited liability corporations and 360 days for publicly-traded limited liability corporations (Table 2). The observed recovery of Commercial Papers issues after September 16 reflects the authorization granted to financial institutions to hold and negotiate privately issued instruments by the National Monetary Council Resolution n. 2,282, of June 5, 16, which revoked the National Monetary Council Resolution n. 2,156, of il 27, 15, provided they are with Cetip or other custody facility accredited by the Central Bank. Figure 1 Commercial Papers in Cetip Monthly Average Balances Outstanding* 5 4 R$ billion Commercial Paper * Nominal value. Reported balances are net of cancellation and redemptions Commercial Papers authorized by CVM may yield fixed or floating rates, the latter referenced in Interbank Deposits Rates (DI), Central Bank s interest rate (over-selic), average interest rate on time deposits of the National Association of Investment and

3 Development Banks (CDB Anbid), Referential Interest Rate (TR), or Long Term Interest Rate (TJLP) (Table 2). Table 2 Commercial Paper issues authorized by CVM Minimum Tenure Yield Fixed-rate Interbank deposits rate (DI) Central Bank s basic rate (over-selic) Average Rate on Time Deposits of the National Association of Investment and Development Banks (CDB Anbid) Referential Rate (TR) Long Term Interest Rate (TJLP) Minimum Tenure or 1 month, the longer or 1 month, the longer The balance outstanding of publicly issued corporate bonds/convertibles in Cetip increased by 5.1% in May 2000 y-o-y, monthly averages considered. Compared to il 2000, total balance in Cetip increased by 1.7% to R$22.5 billion (Figure 2). Authorized issues by the CVM comprise publicly-traded limited liability corporations, joint-stock limited and unlimited liability corporations (sociedade em comandita por ações), mortgage loan companies (if publicly-traded limited liability company), debt securitization companies, mortgage-backed securities companies, and leasing companies. There are no legal restrictions as to maximum tenure of corporate bonds/convertibles issues, but minimum maturity applies (Table 3). Registered corporate bonds/convertibles may yield fixed or floating rates, the latter referenced in Interbank Deposits Rates (DI), Central Bank s interest rate (over-selic), average interest rate on time deposits of the National Association of Investment and Development Banks (CDB Anbid), Referential Interest Rate (TR), Long Term Interest Rate (TJLP), Basic Financial Rate (TBF) restricted to issues by leasing and mortgage companies or be linked to price indices (Table 3). As to other privately issued securities, institutions under Central Bank s jurisdiction are allowed to retain corporate bonds/convertibles in their portfolio provided they are in Cetip or other custody facility accredited by the Central Bank.

4 Figure 2 Corporate bonds/convertibles in Cetip Monthly Average Balances Outstanding* R$ billion Debentures * Nominal values on an accrual basis. Balances are net of cancellation and redemptions Table 3 Corporate bonds/convertibles issues authorized by CVM Minimum Tenure Yield Minimum Tenure Fixed-rate - Interbank deposits rate (DI) - Central Bank s basic rate (over-selic) - Time Deposits basic rate (CDB Anbid) Referential Rate (TR) 1 month Long Term Interest Rate (TJLP) 1 month Financial Basic Rate (TBF) /1 2 months Price Index /2 1 year /1 Issues at TBF allowed only for leasing and mortgage companies /2 For corporate bonds/convertibles linked to price indices, negotiated discounts must be fixed, periodicity of monetary correction restricted to a minimum of one year, proceeds from monetary correction are eligible only at the maturity or reset date, interests and amortization payments taking place in a periodicity shorter than one year must be based on the nominal value, disregarding monetary correction. * Premium of corporate bonds/convertibles are not entitled to remunerate based on price indices, TR, TBF, or any other indexed referring to interest rates.

5 ** none of the above restrictions are applicable to corporate bonds/convertibles remunerating based on the participation in the company s revenue or profit. As of June 12, 2000, corporate bonds/convertibles issued by holding companies accounted for 89% of total balance in Cetip in the year 2000, the majority issued on behalf of communication services controlled companies, gross figures considered (Tables 4 and 6). In 19, the electricity services sector participated with 33% of total gross registrations, followed by holding companies with a share of 25% of total registrations and steel industry with a 10% participation (Table 5). Table 4 Corporate bonds/convertibles in Cetip Gross registrations in 2000 As of June 12, 2000 Sector Category N. of new issuers N. of new issues N. of new registrations Volume ( In US$ thousand) Share of total Construction and Engineering Civil Construction ,761 1% Holding Company Holding Company ,702,800 89% Other industrial activities Other industrial activities ,116 5% Utilities Electricity Services ,781 3% Telecomunications ,203 0% Transportation Transportation ,693 2% TOTAL 1,923,353 * Figures at issue value, converted to the US$ of the issue date. Gross of cancellations and redemptions in the year.

6 Table 5 Corporate bonds/convertibles Registered in Cetip Registrations in 19 Sector Category N. of new issuers N. of new issues N. of new registrations Volume (In US$ thousand) Share of total Food Food ,102 2% Vegetal Oil ,380 0% Commerce Grocery Stores ,529 4% Construction & Engineering Civil Construction ,176 0% Holding Companies Holding Companies ,284,163 25% Finance Leasing ,3 4% Metalurgy Metal Industry ,773 1% Steel Industry ,440 10% Mining Mining ,830 2% Paper and Pulp Paper and Pulp Industry ,162 1% Chemical Rubber ,933 1% Services Services ,286 2% Utilities Electricity ,684,407 33% Public Services ,608 5% Telecom ,682 9% Textile, Apparell and Foot Wear Clothing ,583 1% TOTAL 5,074,451 * Figures at issue value, converted to the US$ of the issue date. Gross of cancellations and redemptions in the year.

7 Table 6 Corporate bonds/convertibles Registered in Cetip By issuers Period Company Type of Debenture Total in the month (R$ Simple Convertible Permutable thousand) 19 Acesita S/A 160, ,313 Bandeirante Energia S/A - 144,100 - BCP S/A 260, Finasa Leasing S/A 102, Globo Cabo S/A - 182,093 - PROHAB S/A 12,6 - - Santista Alimentos S/A 89, Traianus S/A 20, Feb Construtora Sultepa 27, ,761 Mar COSERN (Cia Energética do RN) 51, ,8 Latas e Alumínios S/A (LATASA) 103, Alferville Trust S/A 5, ,722 May America Latina Logística do Brasil S/A (ALL) 32, ,729,771 Draft II Participações S/A 715, Industrial do Brasil Arrendamento Mercantil S/A 22, Brasil Telecom Participações S/A - 602,907 - Telemar Participações S/A 356, Jun DTC - Direct to Company S/A 5, ,203 * Figures are net of cancellation and redemptions. Monthly average of publicly issued Motion Picture Investment Certificates (CINE) in Cetip increased by 13.3% in May 2000 y-o-y. Compared to il 2000, total balance outstanding in the market slightly increased by 0.5% to R$65.8 million (Figure 3). CINEs yield participation percentage at the issuer s discretion on commercialization rights on productions by independent Brazilian studios and on exhibition, distribution and technical infra-structure commercialized by domestic companies. Fiscal benefits apply to primary acquisition of CINEs. Corporation and individual holders of CINEs are elegible to be exempted from taxes up to Corporations taxed based on the real profit may also deduct investments in CINEs as operations expenditures.

8 Figure 3 Motion Picture Investment Certificates (CINE) in Cetip Monthly Average Balances Outstanding R$ billion Cine Information for unrestricted disclosure. It is not intended to bind Banco Central do Brasil in its monetary or foreign exchange policy actions. Request for Focus Reports through the distribution list at [email protected]