FAQ

Brazilian Depositary Receipts, or BDRs, are deposit certificates of securities traded in the B3 of a listed company headquartered abroad (more than 50% of its assets located abroad). The underlying assets of this operation are stocks or securities under custody in the market where these assets are traded.

BDRs require a depositary bank in Brazil and a custodian who will be responsible for maintaining the securities under custody while the BDR exists.

“Unsponsored” means that issuers companies of underlying securities of the BDRs:

(i) do not have ties with BDR programs, with exclusive responsibility lying with the Brazilian depositary institution which issued the certificates; and

(ii) are exempt from registering as foreign listed companies with CVM.

Itaú has credentials from CVM to act as depositary institution of BDRs.

Implementation of a new BDR program is established between the company sponsoring the BDR program and the depositary institution. Additionally, for Levels II and III, the sponsoring company must register as a listed company with CVM and B3.

In Brazil, the BDR Program is regulated mainly by CVM Instruction 332/2000, CVM Instruction 400/2003, CVM Instruction 480/2009 and by B3.

Yes, when issuing or cancelling BDRs, investors must pay a fee to the depositary institution per issued/canceled BDR.