New rules for foreign portfolio investment
On December 3, 2024, the Central Bank of Brazil (“BCB”) and the Brazilian Securities and Exchange Commission (“CVM”) released Joint Resolution No. 13 (“Joint Resolution 13”). This resolution enhances the regulations for foreign portfolio investments in the Brazilian financial and capital markets (“Portfolio Investment”).
Central Bank of Brazil (BCB): New rules to join and use PIX
The Central Bank of Brazil (“BCB”) published Regulation No. 429 on November 11, 2024 (“BCB Regulation 429”), amending BCB Regulation No. 1, of August 12, 2020 (“BCB Regulation 1”) and its attached regulation, significantly changing the rules for unauthorized institutions to join and use PIX.
Ministry of Mines and Energy launches Public Call to select Low-Carbon Hydrogen Hubs
Selected projects may be included in Brazil’s investment plan to access funds from the Climate Investment Funds – Industry Decarbonization, estimated at USD 125 to 250 million per country. As part of its industry decarbonization strategy, the Ministry of Mines and Energy (“MME”) recently issued a Public Call to identify innovative proposals for developing commercial-scale low-carbon hydrogen hubs in Brazil.
Future Fuel Law is enacted, marking a key step in the energy transition
The new law drives the use of sustainable fuels, regulating carbon capture technologies, and promoting the transition to a low-carbon energy matrix.
Low-Carbon Hydrogen Development Program will allow tax credits offsetting
On September 30, 2024, Law No. 14,990, of September 27, 2024, entered into force, providing for the Low-Carbon Hydrogen Development Program (PHBC). The Low Carbon Hydrogen Development Program (PHBC) had been vetoed by the President when Law No. 14,948, of August 2, 2024, was enacted, as analyzed in the Informa of August 13, 2024 and in the Newsletter of the same month.
The rise in Brazil’s benchmark interest rate, the Selic, and the dollar is forcing companies to reassess investments and renegotiate debts
Brazilian companies are redesigning plans, renegotiating debts, and repressing investments with the rise in interest rates and the dollar. While companies around the world have faced a business environment with higher financing costs, Brazilian companies are experiencing an especially heavy burden, hit by one of the highest interest rates in the world after surviving the pandemic with little government help.
Proposal excludes financial expenses from the list of items that can be funded with debenture proceeds
The Ministry of Transport has launched a public consultation on the rules governing the requirements and procedures for classifying and monitoring priority investment projects in the road and rail infrastructure sector for the issuance of incentivized and infrastructure debentures.
The Ministry of Mines and Energy (MME) releases a step-by-step guide for companies to qualify projects and issue tax-exempt debentures
The Ministry of Mines and Energy (MME) published a step-by-step guide for renewable energy generation and distributed mini-generation companies to frame their projects for the issuance of debentures with tax incentives.
