CMN Resolution No. 5,034 — Dispenses on the Formula for Calculating the Weighted Average Maturity and on the Simplified Procedure of Law No. 12,431 of June 24, 2011

JULY 21, 2022

CMN RESOLUTION NO. 5,034, OF JULY 21, 2022

Dispenses on the formula for calculating the weighted average maturity and on the simplified procedure provided for in Law No. 12,431 of June 24, 2011.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes it public that the National Monetary Council, in a session held on July 21, 2022, based on Article 1, paragraph 2, of Law No. 12,431 of June 24, 2011,

R E S O L V E S:

Article 1. For the purposes of Article 1, paragraph 1, item I, and paragraph 1-B, item I, of Law No. 12,431 of June 24, 2011, the weighted average maturity of the title or security must be calculated by applying the following formula:

I - WAM = weighted average maturity in years;

II - Fj = each part of the payment flow;

III - dj = business days to elapse (from the date of WAM calculation to the date of each payment);

IV - i = effective internal rate of return per year on a basis of 252 (two hundred and fifty-two) days; and

V - PV = present value of the title (Unit Price).

Article 2. For the purposes of Article 1, paragraph 1, item VI, paragraph 1-A, item VI, and paragraph 1-B, item VI, of Law No. 12,431 of 2011, the prospectus or, in offerings of securities where there is no disclosure of a prospectus, the offering documents must contain a specific topic within the section on the destination of resources of the offering, in which the commitment to allocate the resources obtained with the issuance of the titles or securities to investment projects referred to in said Law shall be stated.

Paragraph 1. Except in the case of offerings of shares of investment funds in credit rights, the commitment to allocate raised resources may involve future payment or reimbursement of expenses, costs, or debts related to the investment projects.

Paragraph 2. The investment projects referred to in the caput must be described in a manner that allows for their individualization, including, at a minimum, information regarding:

I - the objective of the project;

II - the estimated period for its start and completion or, for investment projects already in progress, the description of the phase in which they are and the estimate of their completion;

III - the estimated volume of financial resources necessary for the realization of the project; and

IV - the percentage estimated to be raised with the issuance of the titles or securities, relative to the financial resource needs of the project.

Article 3. Resolution No. 3,947 of January 27, 2011 is hereby revoked.

Article 4. This Resolution enters into force on August 1, 2022.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil