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ARTICLE · 10 SEPTEMBER 2013

The Brazilian Structured Operations Certificate (COE)

The COE is similar to the structured note as adopted in the international market, which is a hybrid security that includes several financial products, typically a stock or bond plus a derivative, and allows to offer different investments to the client who seeks a mix between fixed income and variable income within a single instrument.

BrazilFinance and Banking

On September 5, 2013, the Brazilian Monetary Council (Conselho Monetário Nacional – CMN) approved CMN Resolution No. 4,623 (CMN Res. 4,623/2013), which regulates the conditions for the issuance of Structured Operations Certificates (Certificados de Operações Estruturadas – COEs), created by Law No. 12,249, of June 11, 2010.

The COE is similar to the structured note as adopted in the international market, which is a hybrid security that includes several financial products, typically a stock or bond plus a derivative, and allows to offer different investments to the client who seeks a mix between fixed income and variable income within a single instrument.

I. General Features and Authorized Issuers

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