In 2024, the Brazilian government enacted Law No. 14,801, creating the framework for incentivized bonds. Building on the success of incentivized debentures under Law No. 12,431/2011, this new instrument allows Brazilian companies to issue debt securities abroad with a zero percent withholding income tax rate for non-resident investors, subject to certain conditions. The measure aims
Giampaolo Marzulli
Capital Markets Insight: International Bonds as an Alternative to Debentures for Brazilian Issuers
By David S. Bakst, Giampaolo Marzulli, Natália Carvalho Minotto, Carlos Motta, Luis Montes, Milena Muradian & Rodolfo Constantino de Tella on
Posted in Debt Offerings
Domestic debt issuance is a widely used funding tool for Brazilian companies and is largely dominated by debentures. Brazil’s fixed income market has expanded significantly, with companies issuing hundreds of billions of Brazilian reais (BRL) in recent years. On the other hand, despite the undisputed dominance of debentures as the preferred funding domestic tool, international…