Q: Financing

Import Finance Being located in one of the world’s largest and most sophisticated financial centres Banco do Brasil London is able to provide import finance to our customers in a wide range of convertible currencies. a.Short term Import finance for periods of up to 360-days is available at highly competitive rates (either fixed or floating rates) from Banco do Brasil London in a wide range of convertible currencies. b.Long term In order to support the needs of our clients who are modernizing their business with the help of imported capital equipment, Banco do Brasil London provides customized import financing structures for such projects. Import finance is available in a wide range of convertible currencies at highly competitive rates (fixed or floating). Export Finance In order to support Brazilian exporters, Banco do Brasil London provides both short and long term export financing at highly competitive rates (fixed or floating). Financing is available in a wide range of convertible currencies. For further information please contact our Trade Finance team via: london.trade@bb.com.br / +44 207 606 7101

Q: Deposit Account

Multi Currency Account Current accounts are in most major convertible currencies.

Q: Fixed Deposit

a) Overnight One day deposit with an agreed rate for personal and corporate account applicants who require instant access to their accounts. b) Time Deposit Deposits with a fixed rate and period (both short and long term) in various currencies with access according to previously agreed conditions, allowing a companys excess liquidity to earn interest and grow. For further information please contact our Corporate Relationship team via: london.sales@bb.com.br / +44 207 606 7101

Question 1

International Guarantees

Accepted Answer

Companies requiring guarantees to support their participation in international tenders, their contractual obligations or their general business requirements can count on the highly skilled professionals at Banco do Brasil London to assist in creating tailor-made solutions to their guarantee needs. Guarantees and counter-guarantees may be arranged under one of the various International Chamber of Commerce rules for such instruments, typically:

Publication 325 – ICC Uniform Rules for Contract Guarantees
Publication 458 – ICC Uniform Rules for Demand guarantees
Publication 590 – ISP 98 - International Standby Practices

The main types of guarantees are:

a) Aval
Most typically seen on either a Promissory Note or a Bill of Exchange, the Aval of Banco do Brasil London would provide a guarantee that underlying obligation will be fulfilled.

b) Fiança
This is a form of guarantee where Banco do Brasil London would assure an obligation of one of its clients for a commercial or financial transaction.

c) Stand-by Letter of Credit (SLOC)
A Standby Letter of Credit may perform exactly the same function as a guarantee and are designed to support the contractual and/or financial requirements of Banco do Brasil London’s corporate customers. Beneficiary’s of Standby Letters of Credit issued by Banco do Brasil London are therefore able to rely on our long standing international reputation in one of the world’s largest and most sophisticated financial centers.
Standby Letter of Credit are customized instruments designed to meet specific purposes and the highly skilled team of experts at Banco do Brasil London are available to assist our corporate customers in meeting their needs.
A Standby Letter of Credit may be designed to be either the primary means via which the beneficiary receives payment or, more often, a means by which payment may be received should a certain specifies event either occur or fail to occur.

d) Bid Bond
A Bid Bond is a guarantee issued by Banco do Brasil London Branch as part of a domestic or international tender process. The existence of the Bid Bond is often a basic requirement of a contract tender process. Without the Bid Bond, a company wishing to participate in an tender for a contract is often required to deposit cash with party requesting bids for the contract.
Consequently, a Bid Bond issued by Banco do Brasil London removes the need for cash to be deposited (and the risk associated with the cash deposit).

e) Performance Bond
A Perfomance Bond, like a Bid Bond, is a guarantee issued by Banco do Brasil London Branch as part of a domestic or international tender process.
The Performance Bond is generally required to be issued as soon as a tenderer is awarded a commercial contract and serves to guarantee the supplier’s performance under the commercial contract.

f) Refundment Bond
This product guarantees that a refund will be made of any payment either made or to be made. The existence of a Refundment Bond often allows a supplier to receive an advance payment under a contract as the buyer is safe in the knowledge that, should circumstances arise where the supplier fails to perform under the contract, the Advance Payments would be repaid.

Question 2

Derivatives

Accepted Answer

Banco do Brasil London is located in one of the main financial centers in the world, for this reason it can grant its clients a wide range of financial instruments enabling more efficient Portfolio management through active and passive hedging techniques using these products available:

a) Interest Rate Swap
It’s an agreement between two parties which allows the exchange of interest rates in a certain currency. It allows swapping floating interest rates to fixed interest rates and vice versa. There is no principal exchange needed.

b) Foreign Exchange Swap
It is a temporary exchange of a deposit in a specific currency to a deposit in another currency, at the same time guaranteeing to exchange it back at a some point in the future at a fixed exchange rate. The principal is exchanged at both the front and future date. The interest rate differential is incorporated in the exchange rate used to determine the amounts exchanged on the transaction at maturity.

c) Forward Rate Agreement
It is a contract established between two parties, which determines what the interest rate will be for a specific period on a certain amount in the future. On the rate fixing date the difference in the rate agreed is determined and then settled in the underlying currency .No principal is exchanged just a net currency amount is settled.

d) Cross Currency Interest Rate Swap
It is an agreement between two parties which allows principal flows and rate changes in different currencies for a specified period of time. The principal amount is exchanged at the start and at the end of the transaction at the same exchange rate. The variable/fixed interest rates can be managed with many combinations (fixed to fixed, fixed to floating, floating to floating).

e) Forex Forward
It is an agreement where both parties are committed to buy or sell a certain amount of a specific currency at a point in future, with the exchange rate already determined on the date of the transaction.

f) NDF ( Non – deliverable forward)
It is a synthetic forward currency contract to sell/buy a notional amount of convertible currency at a fixed exchange rate versus a non-convertible currency, it can be in Reais or any other currency; non convertible to the specified convertible currency, to be settled via a fixing rate on the maturity date, when the net flow is exchanged only in the convertible currency.

Question 3

Treasury

Accepted Answer

Banco do Brasil London is located in one of the main financial centres in the world with an experienced well established team. For this reason it can provide its clients with a wide range of financial instruments enabling more efficient portfolio management through active and passive hedging techniques for numerous deliverable and non-deliverable currencies using the products listed below:

Foreign Exchange (FX)

Spot
Outright
Currency Swap
Deliverable BRL (R$750k+)

Money Market

Cash
CD Programme
MTN Programme
Pre-Export Finance

Derivatives

Non-Deliverable Forwards (NDFs)
Interest rate Swap (IRS)
Cross Currency Interest rate Swap (XIRS)
Synthetic Deposits
Exchange Traded Futures
Options

For further information please contact our Treasury Department via:

london.trade@bb.com.br / +44 207 606 7101
Reuters: BRAZ

Question 4

Business Consultancy

Accepted Answer

Our highly specialized team can offer technical and operational advice and support and provide innovative solutions for complex international transactions involving Brazil due to their knowledge, expertise and experience in the Brazilian market.

For further information please contact our Corporate Relationship team via:
london.sales@bb.com.br / +44 207 606 7101

Question 5

Letters of Credit

Accepted Answer

A Letter of Credit (LC) is a letter from a bank guaranteeing that a buyers payment to a seller will be received within a specified time. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase. In return for guaranteeing the payment, the bank will require that strict terms are met. The use of letters of credit has become a very important aspect of international trade.

Banco do Brasil London has a team of highly skilled Letter of Credit specialists dedicated to assisting importers and exporters with all their Letter of Credit needs.

Export LC
We offer a highly efficient, secure, and professional service in all aspects of export Documentary Letters of Credit - Advising, Confirmation, Negotiation and Acceptance / Discounting.

Import LC
Banco do Brasil London’s team of highly skilled Letter of Credit specialists actively work to assist and support importers in meeting their Letter of Credit needs. In addition to opening and processing Import Letters of Credit and the associated documentation, our team of Letter of Credit specialists are available to assist importers in the structuring of Import Documentary Letters of Credit.

Question 6

Financing

Accepted Answer

Import Finance

Being located in one of the world’s largest and most sophisticated financial centres Banco do Brasil London is able to provide import finance to our customers in a wide range of convertible currencies.

a.Short term
Import finance for periods of up to 360-days is available at highly competitive rates (either fixed or floating rates) from Banco do Brasil London in a wide range of convertible currencies.

b.Long term
In order to support the needs of our clients who are modernizing their business with the help of imported capital equipment, Banco do Brasil London provides customized import financing structures for such projects. Import finance is available in a wide range of convertible currencies at highly competitive rates (fixed or floating).

Export Finance

In order to support Brazilian exporters, Banco do Brasil London provides both short and long term export financing at highly competitive rates (fixed or floating). Financing is available in a wide range of convertible currencies.

For further information please contact our Trade Finance team via:
london.trade@bb.com.br / +44 207 606 7101

Question 7

Working Capital

Accepted Answer

Banco do Brasil London is able to meet the short and long term working capital financing requirements of our customers via loans made in any one of a wide range of convertible currencies and at highly competitive fixed or floating rates, assisting companies with their financial obligations and funding their growth ambitions.

Question 8

Deposit Account

Accepted Answer

Multi Currency Account
Current accounts are in most major convertible currencies.

Question 9

Fixed Deposit

Accepted Answer

a) Overnight
One day deposit with an agreed rate for personal and corporate account applicants who require instant access to their accounts.

b) Time Deposit
Deposits with a fixed rate and period (both short and long term) in various currencies with access according to previously agreed conditions, allowing a companys excess liquidity to earn interest and grow.

For further information please contact our Corporate Relationship team via:
london.sales@bb.com.br / +44 207 606 7101

Question 10

Documentary Collections

Accepted Answer

Simply click on the type of product you think you need to find out more.

This is a trade transaction where the exporter hands over the task of collecting payment for goods supplied to his bank, which sends the shipping documents to the importer’s bank together with the instructions for the payment. The exporter receives payment from the importer in exchange for the shipping documents.