The funds raised by BNDES, without connection to a transfer under specific conditions, except for those coming from the Workers' Supporting Fund [FAT] and funds coming from FAT Special Deposits and from the Social Integration Fund [PIS/PASEP] Participation Fund, may be used to grant credits under financial conditions referred to the National Extensive Consumer Price Index [IPCA].

These credits may be granted to enterprises and sectors as periodically established by the Board of BNDES, and are subject to the following financial conditions:

1. updating at the National Extensive Consumer Price Index [IPCA] variance (code 180 in the currency quotation system). 

2. Fixed Annual Interest Rate, equivalent to the sum of: 
· Reference Rate 
· Basic Fee 
· Credit Risk Rate 


Reference Rate

The Reference Rate is equivalent to the average cost representative of BNDES's and BNDES Participações S.A. [BNDESPAR]'s funding and derivative instruments, denominated in IPCA, for domestic and foreign markets, without connection to a transfer under specific conditions, including all taxes, contributions, commissions and expenses directly applied to such operations.

During the period in which such funding does not exist, the Reference Rate will be replaced by the internal rate of return of National Treasury Notes - Series B [NTN-B] maturing within ten (10) years. In case this Series ceases to be a representative of the competitive domestic federal debt denominated in IPCA, it will be used the internal rate of return mostly reflecting, at BNDES discretion, the competitive domestic federal debt denominated in IPCA maturing within ten (10) years.

The Reference Rate is quarterly updated (disclosed until the fifth business day in the months of January, April, July and October), and fixed at the moment of credit releasing.

In contractual currencies, this rate, expressed in annual percentage, carries the code 009.