S A M P L E P R O G R A M I L L U S T R A T I O N - 9 9
Primary Information About Brazilian LTNs
Tradução portuguesa desta página disponivel Aqui
Primary Information About Brazilian LTNs
Tradução portuguesa desta página disponivel Aqui
IMPORTANT NOTE:
This LTN Purchase Program is very well designed and SRM Services has full confidence in the Program Facilitator's ability to successfully perform once the funding required to launch purchase operations has been obtained. Because of prolonged delays in obtaining this funding, plus the fact that SRM Services already has over 110 LTN packages registered to participate in this program, we have decided to temporarily suspend the acceptance of further LTN packages until program launch funding has been received and purchase transaction closings have begun. If you want us to notify you when we resume accepting new packages, please send us an email here ... and provide your name, contact information, and the quantity and series of LTNs you wish to submit for purchase.
Other Important Notices:
As indicated in the LTN information presented elsewhere in this website, SRM is no longer required to obtain "current" BCB Transport Authorizations and proof of "current" GRU payments before submitting a file to the program for registration. The new requirements are presented below. Also, please ensure that any package you send to SRM has current front and back photos of the physical LTN(s).
SRM History with LTNs:
Since 2013 the SRM Services LTN Team has evaluated and tested over a 100 different LTN Trade and/or Sale Programs (programas letras do tesouro nacional). Most of these programs were not worth the paper upon which they were written. As every bond owner knows, navigating the processes required to complete an LTN transaction is very complex and difficult. Recurring events such as inconsistent guidelines from the Central Bank of Brazil (BCB), untimely downgrading of Brazil's government debt by credit-rating agencies, turmoil in the financial markets related to AML legislation and BASEL III banking requirements have created an environment that required LTN programs to undergo restructuring, often multiple times. And when this is combined with unprofessional behavior from uninformed or less than ethical "online brokers," life in the LTN arena has been challenging.
In 2016 our team narrowed its focus to 3 programs that we felt were truly credible and worthy of consideration. Even these programs have faced their share of painful program restructuring and delays. Even though none of those programs has performed yet, through these past difficult years SRM experienced steady growth in our list of patient LTN bond owners--bond owners that we believe will soon be richly rewarded for their patience.
In 2017 our focus was centered on just 2 LTN programs, programs that we have followed closely for over 3 years. Although we had a very good opinion of the principals behind these programs, ultimately, neither of these program performed.
In 2018 - 2020, we announced our high confidence in an LTN purchase program that uses a transaction process that has kept pace with the ever-changing and challenging issues associated with selling LTN bonds. This program was on the verge of demonstrating performance and we urged our bond owner clients to take note of it immediately and to carefully consider submitting some of their bonds to the queue that was just starting to develop. However, capital funding issues began delaying the launch of the program.
In 2021 - 2022, despite unexpected funding delays since mid-2018 that hindered this LTN program's purchasing activity, we maintained our high confidence that this program will be the first (and perhaps only) LTN program to perform. This is the only program we know of that uses a transaction process that has kept pace with the ever-changing and challenging issues associated with selling LTN bonds and we continued to urge our bond owner clients to carefully consider submitting at least some of their bonds to the queue that was steadily growing in length.
In 2023, raising the necessary capital to underwrite this LTN bond purchasing operation has proven to be more of a challenge than we expected, given the negative representation from the Brazilian government and other sources. However, there remains a strong sense of purpose and a positive outlook from the program administrator that they will be able to complete raising the funding needed and to begin successful purchase operations soon. SRM Services now has over 110 LTN packages officially submitted to and accepted by this LTN purchase program and we are hopeful that initial LTN purchases will begin in 2023.
If you have Series H, J, K, L, M, R or Z Series Letras do Tesouro Nacional (LTNs) that are repactuated and fully and legally registered with the Central Bank of Brazil, then the information below should be of interest to you--and you may want to consider having SRM Services register your bonds (or your client's bonds) into this program's queue for consideration. This LTN purchase program gives highest priority to bond portfolios that contain H-series bonds followed by M-series and R-series bond portfolios. Next priority is given to all other series bonds except Z-series bonds, which are prioritized last because of the fraudulent activity frequently associated with Z-series bonds.
PRIMARY LTN Purchase Program
At no up-front cost to bond owners who are able to present eligible bond portfolios, this LTN purchase program provides access to institutional LTN buyers willing to provide sale proceeds equal to approximately 18% of the LTN's future value (PU+), gross to the bond owner. This represents a price that will range from approximately $300M - $400M USD for an H-Series bond (depending on the maturity PU value of the bond and a BRL/USD exchange rate of .20), with correspondingly higher prices for higher value bonds. While this LTN purchase program has institutional buyers willing to buy any LTN bond series, the Program Manager reports greater initial demand for H-series and M-series bonds.
Priorities of SRM Services:
Recognizing that larger bond portfolios are frequently more attractive to Buyers, it should be noted that the priorities of this LTN purchase program are currently:
This LTN Purchase Program is very well designed and SRM Services has full confidence in the Program Facilitator's ability to successfully perform once the funding required to launch purchase operations has been obtained. Because of prolonged delays in obtaining this funding, plus the fact that SRM Services already has over 110 LTN packages registered to participate in this program, we have decided to temporarily suspend the acceptance of further LTN packages until program launch funding has been received and purchase transaction closings have begun. If you want us to notify you when we resume accepting new packages, please send us an email here ... and provide your name, contact information, and the quantity and series of LTNs you wish to submit for purchase.
Other Important Notices:
As indicated in the LTN information presented elsewhere in this website, SRM is no longer required to obtain "current" BCB Transport Authorizations and proof of "current" GRU payments before submitting a file to the program for registration. The new requirements are presented below. Also, please ensure that any package you send to SRM has current front and back photos of the physical LTN(s).
SRM History with LTNs:
Since 2013 the SRM Services LTN Team has evaluated and tested over a 100 different LTN Trade and/or Sale Programs (programas letras do tesouro nacional). Most of these programs were not worth the paper upon which they were written. As every bond owner knows, navigating the processes required to complete an LTN transaction is very complex and difficult. Recurring events such as inconsistent guidelines from the Central Bank of Brazil (BCB), untimely downgrading of Brazil's government debt by credit-rating agencies, turmoil in the financial markets related to AML legislation and BASEL III banking requirements have created an environment that required LTN programs to undergo restructuring, often multiple times. And when this is combined with unprofessional behavior from uninformed or less than ethical "online brokers," life in the LTN arena has been challenging.
In 2016 our team narrowed its focus to 3 programs that we felt were truly credible and worthy of consideration. Even these programs have faced their share of painful program restructuring and delays. Even though none of those programs has performed yet, through these past difficult years SRM experienced steady growth in our list of patient LTN bond owners--bond owners that we believe will soon be richly rewarded for their patience.
In 2017 our focus was centered on just 2 LTN programs, programs that we have followed closely for over 3 years. Although we had a very good opinion of the principals behind these programs, ultimately, neither of these program performed.
In 2018 - 2020, we announced our high confidence in an LTN purchase program that uses a transaction process that has kept pace with the ever-changing and challenging issues associated with selling LTN bonds. This program was on the verge of demonstrating performance and we urged our bond owner clients to take note of it immediately and to carefully consider submitting some of their bonds to the queue that was just starting to develop. However, capital funding issues began delaying the launch of the program.
In 2021 - 2022, despite unexpected funding delays since mid-2018 that hindered this LTN program's purchasing activity, we maintained our high confidence that this program will be the first (and perhaps only) LTN program to perform. This is the only program we know of that uses a transaction process that has kept pace with the ever-changing and challenging issues associated with selling LTN bonds and we continued to urge our bond owner clients to carefully consider submitting at least some of their bonds to the queue that was steadily growing in length.
In 2023, raising the necessary capital to underwrite this LTN bond purchasing operation has proven to be more of a challenge than we expected, given the negative representation from the Brazilian government and other sources. However, there remains a strong sense of purpose and a positive outlook from the program administrator that they will be able to complete raising the funding needed and to begin successful purchase operations soon. SRM Services now has over 110 LTN packages officially submitted to and accepted by this LTN purchase program and we are hopeful that initial LTN purchases will begin in 2023.
If you have Series H, J, K, L, M, R or Z Series Letras do Tesouro Nacional (LTNs) that are repactuated and fully and legally registered with the Central Bank of Brazil, then the information below should be of interest to you--and you may want to consider having SRM Services register your bonds (or your client's bonds) into this program's queue for consideration. This LTN purchase program gives highest priority to bond portfolios that contain H-series bonds followed by M-series and R-series bond portfolios. Next priority is given to all other series bonds except Z-series bonds, which are prioritized last because of the fraudulent activity frequently associated with Z-series bonds.
PRIMARY LTN Purchase Program
At no up-front cost to bond owners who are able to present eligible bond portfolios, this LTN purchase program provides access to institutional LTN buyers willing to provide sale proceeds equal to approximately 18% of the LTN's future value (PU+), gross to the bond owner. This represents a price that will range from approximately $300M - $400M USD for an H-Series bond (depending on the maturity PU value of the bond and a BRL/USD exchange rate of .20), with correspondingly higher prices for higher value bonds. While this LTN purchase program has institutional buyers willing to buy any LTN bond series, the Program Manager reports greater initial demand for H-series and M-series bonds.
Priorities of SRM Services:
Recognizing that larger bond portfolios are frequently more attractive to Buyers, it should be noted that the priorities of this LTN purchase program are currently:
- Priority #1: processing H-series (the highest demand bond series) and M-series bond portfolios.
- Priority #2: processing bond portfolios containing: R-series, J-series, K-series, L-series bonds.
- Priority #3: processing Z-series bond portfolios.
ALTERNATIVE LTN Purchase Program
SRM is now representing an alternative LTN purchase program...alongside our original LTN purchase program. After evaluating the information about this new purchase program that was made available to us, our LTN team believes this program to be a credible alternative to our original LTN purchase program for some of our clients, and we wanted to make it available to LTN bond owners who may desire to consider another purchase opportunity at this time. You may review more details about this alternative purchase program here. Or, to discuss further with an SRM representative, click here.
Initiate Your LTN Connection With SRM Via Our
Primary LTN INFORMATION FORM
Primary LTN INFORMATION FORM
Criteria for receiving LTN program assistance from SRM Services:
- Bonds titled in the name of the CIS Applicant
- STN bond documents actualized (updated) in 2017 or later
- The most recent BCB or STN Transport Authorization (even if bonds are outside Brazil)
- The most recent GRU & Tax Receipts showing that taxes have been paid on the bonds
- Corporate Resolution signed by the President and Signatory (if the CIS is from a corporate entity)
- Screen shots of the complete 21-page Euroclear file dated within the last 30 days.
* For LTN owners who do not speak English, the SRM Team has Portuguese/English translation services available through our attorney associate in Lisbon, Portugal.
- SRM will work with the consultant or the legal representative of the bond owner* for the purpose of receiving and processing required bond documents.
- Direct access to the LTN owner must be available when required by the purchase program.
- The bond portfolio must contain:
- Bonds titled in the name of the CIS Applicant
- STN bond documents actualized (updated) in 2017 or later
- The most recent BCB or STN Transport Authorization (even if bonds are outside Brazil)
- The most recent GRU & Tax Receipts showing that taxes have been paid on the bonds
- Corporate Resolution signed by the President and Signatory (if the CIS is from a corporate entity)
- Other items that are helpful (if available) but not required are:
- Screen shots of the complete 21-page Euroclear file dated within the last 30 days.
- Upon receipt of all required bond documentation, SRM will provide a Bond Package Summary & Genealogy document to obtain the information necessary to prepare a Profit Share Agreement (PSA) between SRM and the Bond Owner.
- The final item required by SRM prior to package submission to the LTN Purchase Program is the PSA, signed and notarized by the Bond Owner and SRM. (The PSA will ensure that all eligible consultants will be compensated.)
* For LTN owners who do not speak English, the SRM Team has Portuguese/English translation services available through our attorney associate in Lisbon, Portugal.
FREQUENTLY ASKED QUESTIONS
About the LTN Purchase Program that is Available and on How to Work with SRM on LTNs
About the LTN Purchase Program that is Available and on How to Work with SRM on LTNs
INITIATE YOUR LTN COMMUNICATION WITH SRM VIA OUR
Primary LTN INFORMATION FORM
Primary LTN INFORMATION FORM
To receive LTN assistance from SRM Services: If your bond portfolio meets the criteria listed above, we invite you to submit general information about your bond portfolio using our online LTN Information Form. Upon an acceptable review of your LTN Information Form we will communicate back to you and arrange to send you a Program Overview of the LTN program mentioned above as well as other important documents needed to proceed.
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Registered Business Address: 25 First Avenue SW, Suite A, Watertown, SD 57201
Mailing Address: 3210 Chestnut Glen Ln, Colorado Springs, CO 80918
Privacy Notice
Registered Business Address: 25 First Avenue SW, Suite A, Watertown, SD 57201
Mailing Address: 3210 Chestnut Glen Ln, Colorado Springs, CO 80918
Privacy Notice
