Transaction with Quadra Capital provides for the creation of an investment fund and aims to strengthen the institution’s cash and capital structure
The Bank of Brasília (BRB) announced on Monday (20) an agreement with the resource manager Quadra Capital for the sale of R$15 billion in linked assets to operations received from Banco Master. The decision was approved by the bank’s Board of Directors and communicated to the market through a Material Fact.
The deal was formalized through a memorandum of understanding (MoU) and provides for the structuring a specific investment fund. This fund will receive and manage the assets that currently belong to BRB.
According to the announcement, the reference value of R$15 billion will not be paid in full in cash at once. The operation was divided into two fronts:
Cash installment: BRB will receive an immediate cash injection estimated at between R$3 billion and R$4 billion;
Portion in shares (fund): The remaining amount, calculated between R$11 billion and R$12 billion, will be converted into “subordinated shares” of the new investment fund that will be created by Quadra Capital to manage these assets. In practice, the bank will continue to have a share in the future income of this portfolio.
Purpose of the operation
The announcement stated that the main goal with the sale is “strengthen your capital structure e its liquidity“. The bank seeks reinforce cash on hand, improve the financial health of the institution e better organize your assets. Also according to the document, the transaction is a “relevant step in the Company’s readjustment process”.
For the sale to be definitively concluded, the two parties still need to comply with a series of technical conditions set out in the initial agreement.
