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Enron Mail |
FYI. See you all when I am in town.
Yao ---------------------- Forwarded by Yao Apasu/ENRON_DEVELOPMENT on 07/12/99 03:12 AM --------------------------- Andre Cangucu 07/11/99 11:04 PM To: Andrea Bertone/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT cc: Gustavo Junqueira/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Marcelo Parodi/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Bruno Messer/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Yao Apasu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Michael Guerriero/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Allison Venditti/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Scott Porter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, David S Reinfeld/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Idel Metzger/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Corbin Barnes/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Maria Ines Granado/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Scott Porter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT Subject: Igaras Prepay - Next Steps The structure for the financial prepay doesn't seem to work under the Brazilian regulation therefore we need to come up with a different structure. David has put together a couple of different structures but basically all of them will run into the same problem and the Central Bank won't accept those. We (Gustavo and I) had lunch last Thursday with a Mr. Jose Lavia owner of Fair Corretora (a brokerage house that I've worked with) basically he thinks that the financial prepay structure is not going to work because the Central Bank wants to see benefits for the country and impacts in the country's current balance. He asked us to send him a draft of the structure and he will discuss with his partners to see if they came up with different ideas. Below are the comments of the next steps and ideas from Antonio Felix (Tozzini Freire). Central Bank: As recommended by Antonio Felix from Tozzini Freire, we need to decide if this is a deal/structure we want to continue to pursue. If so we should schedule a meeting with the International Operations Director of the Central Bank in Brasilia and make a presentation covering the following points: - The overall structure - Market need - Benefits to the companies involved (petrochemical, pulp and paper) - Benefits to Brazil ? (if any) We should approach this not as a single transaction but as a new product, with specific characteristics, without any similar in the market, that Enron developed in the US and is trying to "sell" in Brazil. Swaps: A swap in Brazil can be arranged between two local parties and neither one needs to be a financial institution. If we want we can have a brokerage house or bank in the middle to register the contract with the BM&F (Mercantile Exchange). The other possibility is to have a swap contract between a local and an offshore entity, in this case the offshore entity needs to be a financial institution. Is one of the Enron companies in the US considered to be a financial institution ? A specialist form Tozzini should be sending us some paper covering swap contracts. I hope to have a better understanding of the requirements for swap contracts after we receive that. Yao Apasu: Andrea mentioned that you were involved with some swap contracts in Brazil. If you have anything about that (presentation, regulation) would you please forward to us. I think that we can structure the prepay mergin a simple loan and fix/floating swap, if the swap is something we are allowed to do under the Brazilian regulation. Please add comments, Andre
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