Brasília – The Bank of Brazil (BB) informed that it has collected US$ 1.5 billion abroad. According to a press statement turned to the market, disclosed yesterday (14th), that financial liquidation should take place on October 20th, 2009. The operation was promoted on Tuesday (13th).
The loan was made through the issue of perpetual bonds, with no specific maturity. The BB should pay interest of 8.5% a year for coupons due every half. The funds should help strengthen the bank’s capital and may be used to grant loans.
In a press statement, BB informs that it should also ask the Central Bank of Brazil for the funds to be considered level 1 capital, for the purpose of the capital adequacy ratio index. This index shows the ratio between the institution’s capital and the volume of funds loaned, pondering risk.
If the proposal is accepted, according to the BB, there should be elevation of 80 points in the institution’s capital adequacy ratio, reaching 16.1%, with level 1 capital exceeding 11.6%.
According to the current regulations, the assets of each bank should be equivalent to at least 11% of the loan portfolio.
*Translated by Mark Ament
