Tauil & Chequer Advogados advises BTG Pactual and XP Investimentos on Engelhart CTP Brasil's first CDCA issuance, worth R$ 8.5 billion

Tauil & Chequer Advogados in association with Mayer Brown advised BTG Pactual and XP Investimentos, as coordinators, on the first issuance of agribusiness credit rights certificates (CDCA), in nine series, by Engelhart CTP Brasil, for a total amount of R$ 8.5 billion.

Following the Brazilian National Monetary Council's (CMN) restrictions earlier this year on issuing bonds with tax benefits, such as Real Estate Receivables Certificates (CRI), Agribusiness Receivables Certificates (CRA), Agribusiness Credit Bills (LCA) and Real Estate Credit Bills (LCI), the CDCA has become a strategic alternative for attracting investors, since it was exempt from Income Tax and the IOF. In addition, CRAs, for example, can now only be issued by companies directly linked to agribusiness.

The operation attracted so much attention from the market and the government that the CMN issued a new resolution to harmonize the rules of the CDCA with those of the CRAs and CRIs, which have been more restrictive since February.

The team was led by partner Bruno Cerqueira and included associate Artur Nascimento, as well as legal assistant Giulia Palaria, all from the Capital Markets & Securitization area.