May 11, 2012

The BNDES Participações S/A (BNDESPAR) has filed a request to register the Public Offering of shares of the ECOO11 Fund — iShares Carbon Efficient Index (ICO2) Brazil – Index Fund at the Securities and Exchange Commission (CVM). The initial amount of the operation, designed for both individual and institutional investors, will be R$ 1.5 billion, which may be increased by up to 35% depending on demand.

The ETFs iShares are index funds whose shares are bought and sold much like shares on the stock exchange. They are effective investment instruments, and investors benefit from instant portfolio diversification, more competitive costs and a high degree of transparency.

The Fund will consist of shares from companies belonging to the Carbon Efficient Index (ICO2). It is managed by BlackRock Brazil. BlackRock, the largest independent global fund manager, managing over US$ 3.5 trillion in assets, has more than 40% of the global market share of ETFs and now has seven index funds that are labeled as IShares in Brazil. Public distribution of shares from ECOO11 will be coordinated by BB - Investment Bank (Descricao Manager) and by Citigroup Global Markets Brazil, Exchange and Securities Brokerage.

BNDESPAR will offer a put option to individual investors who invest up to R$ 25,000 in the Public Offering. The put option is a mechanism by which investors will be able to resell their shares to BNDESPAR at their original Offer value, with no additional inflation adjustment or interest, minus all taxes and charges due.

Investors may exercise the option in the period between the 366th day and the 395th day after the date the offer was liquidated. To ensure the right to exercise the put option, investors may not divest, encumber or transfer the custody of the shares of the Fund until the end of the exercise of the option.

Individual investors may make their investment through the following investment categories:
1 – Direct, with a minimum individual investment value of R$ 1,000 and maximum individual investment request of R$ 300,000, and/or
2 – Indirectly, via investment fund shares, with the alternative form of investment with or without the put option. The minimum individual investment is R$ 300, and the maximum, R$ 25,000, for shares with the put option. For those without the put option, the minimum value for individual contribution is R$ 300, and the maximum, R$ 300,000.

The Public Offering will be held exclusively in Brazil, but non-resident investors can participate. For this purpose, they must hold a foreign investor registration.

The final price per share of the ICO2 Fund will be determined after all investment intentions have been collected, which is carried out only with institutional investors. The distribution price will be determined based on the indication of interest of institutional investors and, also, the share price from the Index on the date of closing of the business day immediately prior to the Bookbuilding procedure (price formation).

The Carbon Efficient Index - ICO2 was developed from a joint initiative between the BNDES and the BM&FBOVESPA and comprises the shares of companies participating in the IBrX-50 that agreed to participate in this initiative, adopting transparent practices with respect to their emissions Greenhouse Gases (GHG).

When weighing shares from participating companies, the ICO2 takes into account their degree of efficiency in GGE emissions, measured by the ratio between emissions and the company's revenue, and the free float (total outstanding shares) of each one. 

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