Business · Companies · 3 hrs ago
BTG Pactual buys BRB assets, including much of its property loan portfolio
Brazilian bank BTG Pactual has been buying assets from the state-owned Banco de Brasília, known as BRB.
The purchases include more than half of BRB’s real estate loan portfolio, but do not give BTG ownership of the bank.
BRB is under severe financial strain, and many customers have withdrawn their money.
The asset sales are bringing in cash and, according to people familiar with the situation, helping prevent the bank from being wound up.
BRB may also sell more assets, while a new development bank could take over some services for the Federal District government, but that plan is not settled.
BRB has asked for a 6.6 billion real loan from Brazil’s credit guarantee fund to strengthen its finances, but did not receive the money.
The Federal District’s governor is considering alternatives as the bank’s future remains uncertain.
BTG Pactual has bought a large part of Banco de Brasília’s assets, including more than half of its property loan portfolio, according to Estadão.
The purchases involve parts of BRB’s portfolios, not a stake in the bank or a change of control.
The sales have helped BRB maintain enough cash to avoid liquidation, according to people familiar with the matter.
BTG is also reported to be interested in other assets backed by collateral, including land owned by BRB.
A possible development bank to manage some operations of the Federal District government is under consideration, but no decision has been made.
- Who
- BTG Pactual and Banco de Brasília (BRB).
- What
- BTG has acquired a large part of BRB’s assets, including more than half of its property loan portfolio. It is buying parts of BRB’s portfolios, not a stake in the bank.
- When
- The purchases have been underway for some time and have recently slowed.
- Where
- Brasília and Brazil’s Federal District.
- Why
- The sales have helped BRB maintain cash and avoid liquidation, according to people familiar with the matter.
This story does not have two clearly opposing sides.
BTG’s purchases of BRB assets have been taking place.
The pace of purchases slowed.
Celina Leão was re-elected governor of the Federal District.
- Property loan portfolio
- BTG acquired more than 50%
- Judicial deposits
- Estimated at about R$30 billion
- Loan request
- BRB sought R$6.6 billion from the Credit Guarantee Fund to strengthen its capital
- Federal District governor
- Celina Leão was re-elected in late October
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