Some of the main fixed income operations structured by Phoenix include:

• CBN – Credit Banking Notes or Credit Linked Notes (named locally as CCB - Cédula de Crédito Bancário): Credit Banking Notes are corporate bonds that allow companies to raise funds in the capital markets using part of their receivable portfolio and other assets eligible to be pledged in guarantee. Those notes, rated by rating agencies, are issued by a bank with or without recourse and with a specific mandate to act as the registering bank nominated by the issuer and registered at CETIP. This type of issuance is exempt of CVM’s (the Brazilian agency equivalent to SEC) prior approval and registration, making it a fast, secure and less expensive alternative for both the issuer and note holder (investor). The entire process (origination, structuring and distribution) takes on average 60 days to the issuer starts to receive the proceeds from the placement.

• FIDC – Closed and End Funds Backed by Certain Receivables Portfolio: In this modality, a fund is created for a determined tenure and amount with a specific purpose to buy rights of credit (receivables) originated by an operational activity of a company or a group of companies. Ideal for companies that intend to “securitize” part of their receivable portfolios and provide a stable inflow of funds to their cash flow. For this type of operation, a prior approval of CVM is required and mandatory.

• Debentures: Most traditional underlying financing instrument that allows companies to raise funds in the capital market, applied mostly to public companies. It could be also used by limited companies, but in this case, a special purpose company should be created. The distribution is conducted through a public and/or private offering and prior approval and registration of CVM is required (mandatory). Issuance is rated by rating agencies. It is the ideal instrument for companies that want to issue debt bonds adjusted by prices indexes (such as IGP-M and IPCA) driven to pension funds.

• Notes Backed by a Rent Agreement and Granted by Fixed Assets – Real Estate (CRI – Cédulas de Recebíveis Imobiliários): Operation that uses as a primary guarantee a rent agreement, using such agreement to grant the repayment of the rent and the operational premise as collateral. A special purpose company should be created in order to sign the rent agreement and assure the right to claim on the premises, in case of default. Prior approval and registration at CVM is required and mandatory. Ideal for companies that want to raise funds using operational premises as an underlying instrument or for “de-immobilization” purposes (built-to-suit).

• ECN – Export Credit Note (CCE – Cédula de Crédito de Exportação): Notes created to fund exporters that want to finance their exports with local funds, alternatively to trade finance operations denominated in dollar. This type of financing keeps the same benefits provided by trade finance lines driven to exports, being exempt of IOF (local tax). Ideal for exporters who want to extend the pre-shipment phase financing (in comparison to ordinary trade finance export financing).

Through its capital markets team, Phoenix is able to provide services related to all three areas of the process, acting on the origination, structuring/modelling and distribution coordination of its operations. The issuance alternatives exposed above can be totally customized to better satisfy specific requirements from both the issuers and investors. Phoenix’s Capital Markets – Fixed Income Operations area offers yet many others financing instruments and alternatives (local and international), that can also be specially designed to match its clients’ needs and demands.