By Brazil Stock Guide – BRB Banco de Brasília SA has signed a memorandum of understanding with asset manager Quadra Capital to sell assets linked to Banco Master in a deal valued at about 15 billion reais ($2.6 billion), according to a regulatory filing released Tuesday (21).
The transaction was approved by the bank’s board and had been under review by Brazil’s central bank.
The structure includes an upfront cash payment ranging from 3 billion reais to 4 billion reais, with the remaining 11 billion reais to 12 billion reais to be converted into subordinated shares of an investment fund that will be created to manage and monetize the assets.
“The operation aims to divest these assets in order to strengthen the company’s capital structure and liquidity, as well as improve portfolio management,” BRB said in the filing.
The lender described the deal as a key step in its broader restructuring process, with expected positive effects on liquidity, asset management and balance sheet optimization.
The immediate cash injection is expected to address short-term liquidity pressures. At the same time, the government of the Federal District is working on a broader multi-bank solution involving a 6.5 billion reais credit to the Fundo Garantidor de Créditos (FGC), which previously supported the bank.
Completion of the transaction remains subject to conditions outlined in the memorandum.
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