New rule spurs race for tax-exempt bonds
The restrictions imposed by the National Monetary Council (CMN) on the issuance of Real Estate Receivables Certificates (CRIs), Agribusiness Receivables Certificates (CRAs), Real Estate Credit Bills (LCIs), Agricultural Credit Bills (LCAs), and Real Estate Secured Bills (LIGs) have led to a rush in recent days for incentivized debentures, which guarantee exemption from income tax for individuals. The volume of trading in the secondary market for these securities reached R$2.5 billion last Monday—just two working days after the government’s resolution—the highest level in a year, according to a survey by Banco ABC Brasil’s research department at Valor’s request.In general, the movement is around R$600 million. Moreover, following the basics of supply and demand, the result was a significant drop in spreads, which is the difference between the rates paid for the bonds and the yields of the equivalent National Treasury Notes Series B (NTN-Bs), which are the benchmark in this market. Overall, the drop was between 0.3 and 0.8 percentage points. The average rate on an Eletrobras debenture (ELET14), for example, maturing in 2031, which was 6.12% per year on January 31, fell to 5.7% on February 5, while the NTN-B with a similar maturity was trading at 5.5%."The market understands that the supply of tax-exempt bonds is going to be smaller. Investors and managers are rushing to buy tax-exempt debentures while they are available," said Roberto Dumke, head of research at Banco ABC. "It’s very difficult to find securities, and not just from the biggest companies, with a triple-A credit rating," confirmed Leonardo Ono, private credit manager at Legacy Capital. There are already cases of incentivized debentures being offered at rates below those of federal bonds. Raphael Barcelos, partner at RBR Asset responsible for the Infrastructure area, cites examples of Taesa, a power transmission company traded at 0.1 points below the NTN-B, and Rumo Logística, with no premium over the federal bond.The CMN resolution, which on February 1 established that only companies in the real estate and agribusiness sectors can issue CRIs and CRAs and changed the term and backing of banks’ LCIs, LCAs, and LIGs, was the climax of a movement of change that had been slowly taking place since October. First, with the advance of discussions around taxing exclusive closed-end funds, super-rich investors stopped directing new money into these investments in search of options without...
Para continuar a ler
PEÇA SUA AVALIAÇÃO