Brazil LTN

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Repatuated LTN

Our capabilities enable possibilities to become reality.

OVO works with its clients to create and complete an exchange listed, Delivery vs. Payment "Euroclear DVP procedure" T2S eligible transaction. Only LTN "STN Black Screen" registrations, with electornic custody at STN are eligble.


Why only Black Screens? The Central Bank of Brasil website states: "Current law prohibits BCB to issue government bonds. Furthermore, all bonds issued by the Brazilian National Treasury (Tesouro Nacional) are traded and held electronically and do not exist on paper. Thus, documents presented in paper format are fruadulent and do not represent debts of the BCB nor debts of the Brazilian government". Moreover, B3 states: "securities in Brazil have been fully dematerialized since the nineties. Custody positions are registered in book-entry format". Thus LTN's held in electronic custody via STN mitigages any potential fraud of paper based LTN's.


The LTN Black Screen, can with special treatment be used as collateral for new fungible Asset Backed issuances from where high value exits via Euroclear DVP procedure T2S can take place. What's required?

  • Titleholder CIS.
  • Copies of Black Screens.
  • Copies of all Certificates and Authorizations.
  • Attestations and Ownership.

We will then execute due diligence and follow up with any questions and if required, ask for additional supportive documentation. Upon successful due diligence, we will then issue a contract for the exchange listing and Sale of the instrument(s).

About LTN

Strategic solutions to complex issues.

In the early 1970's Brazil Central Bank needed to create new fixed rate instruments which were more suitable for monetary policy. Laws no 1,079 and CMN Resolution no 150 of 1970 were passed thus establishing Letra Tesouro Nacional ("LTN") National Treasury Bills for Monetary Policy.

  • In 1970 LTNS were 5% of the total debt.
  • By 1972 LTNS were 33.6% of the total debt.
  • Short term Notes to fund Government, control inflation and monetary policy.

The current issue LTN and LFT fixed and floating-rate bills are the most liquid securities in Brazil. LTNs of the 70's and through today are successful legal Federal Debt Instruments. As evidenced by Brazilian laws issued in 1995, 2000 and 2001, LTNs which stem from the 1970's are legitimized and held to be valid instruments. Moreover, in an issued 2009 law LTNs were awarded use as legal forms of payment for Brazil Federal Taxes. However, they must undergo "GRU" taxation, and be revalued by the Tesouro Nacional. While today historic LTNs are not fungible, they can with special treatment be used as collateral for new Asset Backed issuances where the new isuance can be exited for value.

Euroclear LTN

Strategic solutions to complex issues.

Current issue LTNs are listed on Euroclear today in the form of Global Bonds. For LTNS which may be listed please provide the ISIN number only. No CIS, no other data. We will validate the Bond via Euroclear. If the Bond is valid, we will immediately ask for the following data:

  • Proof of ownership.
  • A "free and clear and available to sell statement".

Upon proof of ownership, we will immediatley contract from where the titleholder will then execute a DVP Sales Ticket. The buyer will input his Buy Ticket where subsequently the transaction will close.


Want to learn more about solutions? Contact us today, and we'll connect you with a principal member of the firm who can help you with your needs.

European Exchange Listing

Strategic solutions to complex issues.

For clients who wish to enable their LTN based Black Screens for a high value Euroclear DvP eligible transaction, below is a summary of the proceedings.


Upon execution of the contract, a Securitised Asset Backed Note and all listing documents are created, from where our institutional Lead Manager, Underwriter/Nominated Advisor, Exchange ( Borse ) execute Dematerilaization of the Notes, ISIN issuance, and listing. Note: the LTN, provides value to the ABS Note. The new ABS Note receives the ISIN, is listed and becomes Euroclear DVP T2S eligible not the LTN.


We execute exchange listings in the same manner as most all listed debt issuances are listed.

  • Structured Asset Backed Securitization.
  • Dematerialization and ISIN.
  • Exchange Listing.
  • Euroclear DVP T2S closing.

Upon ISIN issuance, we will delliver the Buyer's Package to the Institutional Funds from where the Subcription Agreement is executed and their Euroclear Funds are deposited into the transactional Euroclear Clearing Bank.


Upon deposit of Buyer's funds, the listiong is completed and is DVP eligibile. The titleholder will then execute (i.) a change of title of the Bond; and (ii.) a DVP Sales Ticket. The buyer will input his Buy Ticket where subsequently the transaction will close and funds are dispersed.


Want to learn more about solutions? Contact us today, and we'll connect you with a principal member of the firm who can help you with your needs.

Our SPECIALTIES

  • Transforming Illiquid Assets

    OVO specializes in Transforming illiquid assets into viable structured liquid assets via credit-linked asset backed solutions from where they can then be exited via the European public exchanges.

  • Brazilian Assets

    We have a deep understanding of vehicle structures and the market. We custom structure Brazil LTNs into credit-linked asset backed instruments where such can be exited via the European public exchanges.

To learn more about Brazil and the history of LTNs, click the button below.


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