BM&FBOVESPA and Citibank hold the ceremony to celebrate the start of trading in Citibank-issued Unsponsored Level 1 Brazilian Depository Receipts (BDRs) on November 29 at the Raymundo Magliano Filho Visitors’ Center. Taking part in the event will be Citibank CEO Gustavo Marin; Citibank equities director Roberto Serwaczak; Citibank director of securities and fund services Marcio Veronese; and BM&FBOVESPA CEO Edemir Pinto.
The Citibank–issued BDRs lot is for ten companies: Alcoa Inc.; Cisco Systems, Inc.; Citigroup Inc.; Freeport-McMoran Copper & Gold Inc.; General Electric Company; Intel Corporation; Merck & Co. Inc.; Microsoft Corporation; Procter & Gamble Company and Wells Fargo & Company.
The Unsponsored Level 1 BDR is a certificate representing stock issued by a foreign-headquartered publicly traded company or the like, in keeping with the definition of CVM Instruction 332/00. It is thus considered a foreign investment from Brazil. The issue and registry of Unsponsored Level 1 BDRs is the responsibility of a depositary institution in Brazil in which none of the companies represented has a stake.
The BDR lot issued by Citibank can be traded by financial institutions, investment funds, portfolio managers and stock consultants authorized by the Brazilian Securities and Exchange Commission (CVM). The last two on the list are only permitted to invest own capital. Individuals can only participate in this new form of investment via funds.