BDR

Brazilian Depositary Receipts certificates for the securities of a publicly traded or similar corporation with registered offices abroad and trading on the Brazilian stock exchange. The operation is backed by shares or securities held in custody in the trading market. There must be a depositary institution in Brazil and a custody agent abroad that will be responsible for the assets’ bookkeeping and custody.

BDRs are recommended for publicly traded companies abroad, and may stand as a fresh funding source.

For investors in Brazil, BDRs enable simple and convenient access to foreign markets, in addition to proceeds paid in domestic currency.