Informação jurídica inteligente
 Brasil | +55 (11) 31 81 77 29

Foreigner exemptions boost infrastructure bond supply

Document Citado por Related
Vincent

Debt issuances in the foreign market are expected to receive an additional boost this year with a legislative change that will allow infrastructure companies to offer bonds with income tax exemptions for foreign investors. This logic mirrors that of incentivized debentures: companies with eligible projects can use these projects as collateral in the offerings, and the purchasers of the debt will benefit from the tax exemption.This amendment is anticipated to have a positive impact, especially since the infrastructure sector is among those that least access the foreign bond market. Citi reports that only 8% of Brazilian corporate issuances abroad are from companies in this sector, a stark contrast to the situation in other Latin American countries. For instance, infrastructure companies constitute nearly 21% of corporate issuances in Mexico, 23% in Chile, and 16.1% in Colombia. This analysis is based on data from Dealogic and considers the bond stock as of December.The option to issue "infrastructure bonds" came about recently with the enactment of Law 14,801/24, which introduced the new infrastructure debentures and amended Law 9,481/97. This latter law addresses the imposition of income tax at source on the earnings of beneficiaries residing or domiciled abroad. The law was sanctioned in January by President Lula, but the market awaits further details, such as the sectors that will be prioritized for the issuance of these tax-exempt bonds.Banks and lawyers active in this sector expect that new...

Para continuar a ler

PEÇA SUA AVALIAÇÃO

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT