Banco do Brasil delivers Basel-proof hybrid

13 Jan 2012

Banco do Brasil attracted almost a six times oversubscription on Thursday for a ground-breaking $1bn perpetual tier one deal that has been thoroughly future-proofed to comply with Brazil’s anticipated implementation of Basel III legislation later this year.

The key differentiator of the new note to previous hybrids is its "qualifying amendments", which give the state-owned borrower discretion to change certain features of the structure to become Basel III compliant. These include suspension of interest payments, switching between dividend pusher and dividend stopper, and alterations to ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial