The Agribusiness Credit Bills (LCA) is a fixed-income security issued by Bank of China (Brasil) Banco Múltiplo S/A, backed by credit rights originating in agribusiness. The great competitive advantage of this product is the exemption from income tax for individuals, which increases its profitability and makes it more attractive.
Investment in LCA is guaranteed by the Credit Guarantee Fund (FGC), up to a limit of R$250,000 per CPF/CNPJ, per financial institution or conglomerate. The availability of LCA (Agribusiness Credit Bills) is limited by the stock of backing operations.
Issuer:Bank of China (Brasil) Banco Múltiplo S/A (BOC Brasil)
Target Audience: Individuals
Investment Term and Liquidity: The terms and liquidity conditions of LCA issues are established at the time the operations are closed, subject to a minimum term of 275 days (09 months) for CDI or Pre-fixed and 1 year for price index.
Redemption takes place only on maturity of the operation, there is no grace period or anticipated liquidity for redemption.
Applicable Taxation:
IRPF (Individual): Exempt at source
IOF (Tax on Financial Operations): Not applicable
Product Risk Rating: The product rating is LCA (Letra de Crédito do Agronegócio) issued by Bank of China (Brasil) Banco Múltiplo S/A.
Main Risk Factors:
- Liquidity Risk: Liquidity will occur according to the maturity of the security determined in its issue. If the investor needs the amount invested in advance, they will not be able to redeem it early.
- Market Risk: Risk associated with losses that may occur due to variations in market price indices (e.g. interest rates, price indices, exchange rates). Changes in the macroeconomic scenario make it possible for market risk to occur in financial investments in LCAs (Agribusiness Credit Bills) with pre-fixed remuneration or linked to price indices.
- Credit Risk: There is a possibility of losses associated with the issuer's failure to fulfill its financial obligations in accordance with the issue/agreement between the parties. Investors should assess the risk quality and Credit Rating of the financial institution before making their investments. LCA (Agribusiness Letters of Credit) operations are guaranteed by the Credit Guarantee Fund.
This institution adheres to the ANBIMA Code of Regulation and Best Practices for the Distribution of Investment Products.