Summary of Transaction Demarest acted as deal counsel assisting the parties
involved on the preparation of the documentation of the offering,
and negotiation of its terms and conditions.
Public offering with restricted sales efforts (CVM Regulation
476/2009) of 122 (one hundred twenty two) certificates of
agribusiness receivables ("CRA"), issued by Gaia
Florestal Securitizadora S.A. ("Gaia"), amounting to BRL
40 million. BB Banco de Investimentos S.A. ("BB-BI")
acted as the leading placement agent.
Use of structured financings, such as the CRA, in the capital
markets is a trend the agribusiness sector will follow to provide
the necessary funds it needs to comply with the demand within the
following years. This CRA offering is the first implemented by
Banco do Brasil - the largest agribusiness financer in Brazil - and
Gaia - the largest securitization company in Brazil -, and is
groundbreaking since provided financing to a sugarcane producer
under a long term facility (almost 5 years).
The BM&FBOVESPA S.A. – Securities, Commodities and Futures Exchange (BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros), hereinafter referred to simply as BVMF, in its new Regulation for Listing of Issuers (Regulamento de Listagem de Emissores), has tightened the siege against speculative securities and this affects directly the trading of the so-called "penny stocks".
2014 is set to be Brazil’s year. The FIFA World Cup is expected to bring 600,000 international visitors to 12 host cities, inject R$25 billion (£6.6 billion) into the economy and present Brazil’s vibrant culture to more than 700 million viewers worldwide. With the eyes of the world on Brazil, 2014 will also be the year that the country signals its intention to get tough on corruption; a problem which is perceived to have historically restricted economic growth and inhibited foreign investment.
The Anti-Corruption Law, which was approved in August 2013 and became effective
at the end of January 2014, brought about significant changes regarding the
relationship between private businesses and government employees.
In line with a worldwide trend, the corporate social responsibility has been a growing concern for Brazilian companies not only to improve their public image, but also, and especially, as a tool for social integration and community development.
Usually a legal due diligence process has the purpose to analyze the main legal documents and information of a target company before the parties involved therein enter into transactions, such as mergers, acquisitions, issuance of new stock or other securities, project finance, securitization, etc.
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