CRAs e CRIs: como funcionam e que empresas podem captar? | Gabriel Lopes

But when we talk about the CRA we are basically talking about the Agribusiness Receivables Certificate, a security issued by the securitization company and which is an incentivized security, what does that mean? It is a security that enjoys tax exemption for individual investors As the name suggests, it is correlated to agribusiness So, what are the possibilities of companies within agribusiness that can issue CRA? We like to use, conceptually, three major verticals to talk about CRA issuers in the Brazilian market What we call "before the gate" is the company that produces raw materials for rural producers to

develop their activity so it can be a fertilizer company, a chemical pesticide company, cooperatives or raw materials resellers These are the players that are before the gate but have the relationship with the rural producer when we talk about CRA you will always find in the center a relationship between the companies that are issuing CRA and the rural producer So who is before the gate provides raw materials for rural production so that the rural producer can develop their activities this player generally uses CRA issuance in the Brazilian market The second vertical is "inside the gate", which

is, in fact, the rural producer so the rural producer who carries out his activities, be it a soybean producer, a corn producer, cotton this guy, naturally, by regulation, he can use the CRA issuance and then there is "after the gate" which are all the companies that buy or provide services to rural producers in post-production, so from a logistics company, a supermarket, for example, all of these that have a correlation with the rural producer they can also issue CRAs but recently we have had some changes in regulations that have somewhat limited the issuance of CRAs and

CRIs in the Brazil and what was happening is that people were stretching the rope a lot in terms of saying that they had this relationship with rural producers, companies that you did not naturally recognize as a link in rural production were issuing CRA or CRI in this case real estate and what is the biggest concern? Because it is an incentivized security, you will always look for the essence of the law as to why this tax incentive exists and at the end of the day it exists to promote rural production. So if you are allowing companies

that have, for example, a large part of the revenue not correlated with rural production, but has a relationship with the rural producer, there was a concern that you would denature this tax incentive a little So recently we had some changes in the regulations on this And then now entering a little into the CRI structures as the name itself indicates, it is correlated to the real estate world there is also the tax incentive When it was created, it was understood that there was a need to promote the real estate industry in Brazil and that is why

they created this tax incentive way back Naturally, when we talk in real estate, people will always think of real estate developers, construction companies, the world of allotments, these are the traditional capturers for this world of CRI, from a developer that is building a residential or commercial development to, in my example, a company that has real estate assets and leases these assets and wants to anticipate this flow of receivables over time, even a company that builds allotments So, these are usually the players that issue CRI in the market but anyone who thinks that we restrict the

possibility only there is mistaken companies that have real estate CAPEX When I say CAPEX here it is real estate investment for some project or specific purpose, as you have this correlation with the real estate world. these companies can also issue CRI so, a practical example, a privately held company that is going to build an industry, for example, it is going to build another manufacturing plant and it needs to raise money to make this investment a possibility, yes, it would be done through the CRI Before, until this change in regulation that I told earlier related to

the CRA, which was recent, about three months ago, any and all companies that had this real estate cost to incur in the future, they could make use of the issuance of CRI but, as with the CRA, they also there was a concern about not denaturing the essence of the tax incentive, some limitations came in this sense, so companies that are publicly traded and that do not have at least 2/3 of their revenue concentrated in the real estate world, even if they have the purpose of raising resources with the real estate objective, these companies cannot do

CRI So generally here we are talking about CRI of a possibility of a company that is not traditionally a developer, construction company, subdivision company, but which is privately held and wants to raise money for some real estate purpose, these companies can also issue CRI figures