The Mortgage Bills (LCI) is a fixed-income security nominative to the client, issued by Bank of China (Brasil) Banco Múltiplo S/A as a term deposit, with the conditions of Term and Rate established at the time of closing the negotiation of the operation.
Remuneration:
Pre-fixed: Fixed rate set at the time of application.
Post-fixed: Linked to economic indicators such as CDI or IPCA.
Guarantees: Protected by the Credit Guarantee Fund (FGC) up to R$ 250,000 per CPF.
For additional information on the FGC's guarantee conditions, please consult the link listed below: https://www.fgc.org.br/documents/d/asset-library-52554/regulamento-fgc240905-1
Issuer:Bank of China (Brasil) Banco Múltiplo S/A
Target audience: Individuals
Terms: The terms and liquidity conditions of LCI issues are established at the time the transactions are closed.
Minimum term: 6 months
Daily Liquidity: At Bank of China (Brasil) Banco Múltiplo S/A, early redemption of Real Estate Letters of Credit can be made in part or in full after the 9-month grace period, provided that this condition has been agreed upon at the time of application.
No Liquidity: Redemption takes place only on the date negotiated between the client and the bank. Under this condition, there is no anticipated liquidity.
Main Risk Factors:
Credit Risk: This is related to the issuing financial institution's ability to honor its financial commitments. Even when backed by real estate loans, the credit risk is significant if the institution has financial problems.
Market Risk: This is associated with changes in interest rates and other economic indicators. Fixed-rate securities are more sensitive to these fluctuations, as an increase in interest rates can reduce the present value of the security.
Liquidity Risk: Refers to the difficulty of converting the investment into cash before maturity. LCIs have low liquidity due to regulatory restrictions on minimum maturity and limited trading on the secondary market.
INVESTOR PROFILE
Conservative Profile: The Real Estate Credit Bill (LCI) is best suited to investors looking for security, predictability and low risk, typical characteristics of a Conservative Profile. There are several reasons for this:
Low Risk: LCIs are considered low risk because they are backed by real estate credits and protected by the Credit Guarantee Fund (FGC), which guarantees up to R$250,000 per investor in the event of default by the issuing institution.
Predictable Profitability: LCIs offer pre-fixed or post-fixed profitability, which gives investors a good idea of the expected return over the investment period.
Tax exemption: LCIs are exempt from income tax for individuals, which increases their attractiveness for investors looking to minimize their tax obligations.
This institution adheres to ANBIMA's Code of Regulation and Best Practices for the Distribution of Investment Products.
