Financing sweeteners are being used in Brazil to encourage
local borrowing by inbound investors.
It is hoped that new combinations of equity kickers will make
Brazilian funding more attractive to foreign investors, and
help counter the effect of high interest rates and low loan
These structures, plus a welcomed February court ruling
clarifying the status of a popular form of secured guarantee,
boost broader efforts to diversify funding away from
development bank BNDES.
Financial instruments are becoming very advanced, and
mixing debt with equity to create new debt instruments,
said Pinheiro Netos José Luiz...