Brazilian Depositary Receipts (BDRs) are certificates representing shares of foreign companies traded in Brazil.
A BDR program is the ideal instrument for foreign companies to establish a presence in the most dynamic capital market in Latin America. The listing in Brazil increases the visibility of the company and contributes to paving the way for future public offerings, acquisitions and consolidation of business growth.
Foreign companies electing to access the International Market by listing a BDR program benefit from:
The shares of the foreign company (BDR’s underlying assets) are blocked abroad in the account of the program’s custodian institution.
These shares must be from companies based in countries whose regulators have signed a cooperation agreement with CVM or that are signatory to the IOSCO (International Organization of Securities Commissions) multilateral memorandum of understanding.
The BDRs are governed by CVM Instruction 332, by CVM Instruction 480, by the BM&FBOVESPA Issuers Regulation and Manual, in addition to other applicable legal provisions and regulations.
Find below a comparison chart of possible BDR programs:
|Unsponsored - Level I||Sponsored - Level I||Sponsored - Level II||Sponsored - Level III|
|CVM registration||Program||Program||Program and company||Program and company|
|Trading market||Stock exchange||Stock exchange||Stock exchange||Stock exchange|
|Permitted investors||Qualified institutional investors||Qualified institutional investors||Any and all investors||Any and all investors|
|Required financial reporting standards||GAAP in the country of origin||GAAP in the country of origin||IFRS||IFRS|