Capital Markets Insight: Incentivized Bonds under Brazilian Law

In 2024, the Brazilian government enacted Law No. 14,801, creating the framework for incentivized bonds. Building on the success of incentivized debentures under Law No. 12,431/2011, this new instrument allows Brazilian companies to issue debt securities abroad with a zero percent withholding income tax rate for non-resident investors, subject to certain conditions. The measure aims to attract foreign capital to finance infrastructure and innovation projects. 

This Legal Update from our Capital Markets and Banking & Finance practice highlights the key features of incentivized bonds, including the scope of the tax benefit and the eligibility requirements for issuers.