By Mary-Katherine Stinson
Lexington, Ky., Feb. 2 – Brazil’s Itau Unibanco Holding SA priced R$1 billion of subordinated tier 2 financial bills in two tranches, according to a 6-K filing with the Securities and Exchange Commission.
The first tranche consists of R$530 million bills due February 2034 with a repurchase option beginning in 2029.
There is a second tranche of R$470 million of bills due February 2039, with an optional repurchase beginning in 2034.
In accordance with the Central Bank of Brazil’s resolution, the issue will make up the tier 2 capital of the company’s equity. There will be an estimated impact of 8 basis points on its tier 2 capitalization ratio.
The bills were underwritten by Opea Securitizadora SA.
The bills were issued in order to optimize the company’s capital structure considering its asset growth, according to the filing. Proceeds will be used to reimburse costs directly related to the acquisition of a real estate development.
Itau Unibanco is a lender based in Sao Paulo.
| Issuer: | Itau Unibanco Holding SA
|
| Amount: | R$1 billion
|
| Description: | Subordinated tier 2 financial bills
|
| Underwriter: | Opea Securitizadora SA
|
|
|
| 2034 bills
|
| Amount: | R$530 million
|
| Maturity: | February 2034
|
| Call option: | Beginning in 2029
|
|
|
| 2039 bills
|
| Amount: | R$470 million
|
| Maturity: | February 2039
|
| Call option: | Beginning in 2034
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
