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On 7 January 2002, the National Treasury, with the technical and
operational support of the Brazilian Custody and Settlement Company
- CBLC, implemented the Tesouro Direto, allowing individuals to
purchase public bonds directly through the Internet. The Program
aims at democratizing investment in federal bonds, stimulating
long-term savings, and providing information regarding the
management and structure of the Brazilian federal public debt. This
initiative is first of its kind in Latin America.
Purchase and Sale of Bonds
The minimum limit per investor is of 0.2 bond (approximately R$
100.00) and the maximum is R$ 400,000.00 per month. There are no
limits to public bond holdings; in other words, investors may
purchase the R$ 400,000 limit every month. Those months the interest
is paid and the bonds are purchased through the Tesouro Direto, the
value redeemed or paid in interest is added to the monthly limit of
R$ 400,000.00.
In order to provide liquidity to the bonds purchased through the
Tesouro Direto system, the National Treasury performs weekly
repurchases, held between 9 am on Wednesday and 5 am on Thursday.
There is no time limit regarding the resale of bonds back to the
Tesouro Direto, nor is there a limit to the repurchase value. The
bonds are repurchased at the market price quoted on the date of the
transaction.
Bonds Available for Purchase
The following bonds may be purchased via Internet:
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LTN National Treasury Bills: bonds which yields are
determined (fixed rate) upon purchase. Form of payment: upon
maturity; |
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LFT Treasury Financial Bills: bonds which daily yields are
linked to the economys basic interest rate (average rate of
daily operations with public bonds registered in the SELIC
system, or simply, the SELIC rate) Form of payment: upon
maturity; |
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NTN-B National Treasury Notes B series: bonds which
yields are linked to the variation of the Consumer Price Index -
IPCA, along with the interest defined upon purchase. Form of
payment: every six months (interest) and upon maturity
(principal); |
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NTN-B Principal: bonds which yields are linked to the
variation of the Consumer Price Index - IPCA, along with the
interest defined upon purchase. Form of payment: upon maturity;
and |
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NTN-F National Treasury Notes F series: bonds with fixed
rate yields, along with interest defined upon purchase. Form of
payment: every six months (interest) and upon maturity
(principal). |
Payment
The purchase of bonds through the Tesouro Direto system must be paid
for with resources made available in the account of the Custody
Agent. Upon confirmation of the bond purchase, the Tesouro Direto
system will determine the deadline the investor must make the funds
available in the account of the Custody Agent. The investor shall
then contact his or her Custody Agent to obtain the information of
the account in which the funds must be deposited. There is no change
for those investors who are registered by banks that are part of the
Tesouro Direto system.
Operating Hours
The purchase and sale of bond through the Tesouro Direto system may
be made 20 hours a day on working days and 24 hours a day on
weekends and holidays. Between 5 and 9 am on working days, activity
on the Tesouro Direto is suspended for system updating and
maintenance. Balance and limit statements may be issued 24 a day.
However, the National Treasury may suspend the activities of the
Tesouro Direto at any time, as deemed necessary.
Public and Restricted Access
The public bond sale portal has two types of access: public and
restricted. The general public may access information regarding
registration, sales, purchases, public debt indicators, legislation,
system security, as well as other types of information. Access is
restricted once the username and password have been entered,
allowing the investor to perform purchase and sale operations, as
well as monitor account activity.
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