R$ 1.386.600.000,00 Santander Brasil (NYSE: BSBR) Tier 2 capital issue
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Banco Santander (Brasil) S.A. reports that over the last few months it issued subordinated financial bills totaling R$ 1.386.600.000,00 to private investors. The proceeds will be used to compose Level II of the bank's Reference Equity.
The Financial Bills have a 10-year maturity and include a repurchase option starting in 2031, in line with applicable regulations. They are authorized to form Level II Capital of the bank's Reference Equity, affecting its Level II capitalization ratio under BCB Resolution No. 122, of August 2, 2021.
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Key Figures
Financial Bills issuance: R$ 1.386.600.000,00
Maturity: 10 years
Repurchase option: 2031
+1 more
4 metrics
Financial Bills issuance
R$ 1.386.600.000,00
Total aggregated amount of subordinated Financial Bills issued
Maturity
10 years
Term of the Financial Bills
Repurchase option
2031
Repurchase option start date for the Financial Bills
Regulatory framework
BCB Resolution No. 122, of August 2, 2021
Authorizes inclusion in Level II Capital and affects capitalization ratio
Key Terms
Financial Bills, Level II Capital, Reference Equity, BCB Resolution No. 122
4 terms
Financial Bills financial
"it has issued financial bills with a subordination clause ("Financial Bills")"
Level II Capital financial
"authorized to compose the Level II Capital of the Company's Reference Equity"
Reference Equity financial
"compose Level II of the Company's Reference Equity (RP)"
BCB Resolution No. 122 regulatory
"pursuant to BCB Resolution No. 122, of August 2, 2021"
FAQ
What capital transaction did Banco Santander (Brasil) S.A. (BSBR) disclose in this 6-K?
Banco Santander (Brasil) S.A. disclosed issuing subordinated Financial Bills totaling R$ 1.386.600.000,00. The instruments were placed with private investors and are structured to qualify as Level II Capital, strengthening the Level II portion of the bank’s Reference Equity under Brazilian regulations.
How will the proceeds from Santander Brasil’s new Financial Bills be used?
The proceeds from Santander Brasil’s Financial Bills will be used to compose Level II of the bank’s Reference Equity. This means the funds help support its regulatory capital structure, specifically the Level II Capital segment defined by Brazilian banking rules and capital adequacy standards.
What are the maturity and repurchase terms of Santander Brasil’s Financial Bills?
Santander Brasil’s Financial Bills have a maturity of ten years and include a repurchase option starting in 2031. These terms align with applicable regulations for subordinated instruments that qualify as Level II Capital within the bank’s Reference Equity structure.
How do these Financial Bills affect Santander Brasil’s regulatory capital ratios?
The Financial Bills are authorized to compose Level II Capital of Santander Brasil’s Reference Equity, affecting its Level II capitalization ratio. This treatment follows BCB Resolution No. 122, of August 2, 2021, which governs how such subordinated instruments count toward regulatory capital.
Who purchased the R$ 1.386.600.000,00 in Financial Bills issued by Santander Brasil?
The R$ 1.386.600.000,00 in subordinated Financial Bills issued by Santander Brasil were negotiated with private investors. These investors provide funding through the bills, while the instruments are structured to qualify as Level II Capital within the bank’s overall Reference Equity framework.
