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April 8, 2008 |
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BANCO BMG: Gets Central Bank Okay for BRL600MM Capital Increase Banco BMG has secured the Brazilian central bank's approval for its planned BRL600 million capital increase, the first stage of a five-year, BRL1 billion credit line it got from UBS Pactual. Banco BMG told Business News Americas that shareholders' equity now rises above BRL2 billion. According to BNamericas, Banco BMG had BRL1.33 billion in shareholders' equity at the end of 2007. As reported in the Troubled Company Reporter-Latin America on March 31, 2008, Banco BMG's Chief Executive Officer Ricardo Guimaraes said that the BRL1 billion credit line from UBS Pactual will give the bank time to decide whether to carry out an initial public offering or form a partnership with another bank. Banco BMG shareholders will still decide when to receive the remaining BRL400 million from the credit line, BNamericas states, citing a bank spokesperson. Banco BMG is the banking arm of Grupo BMG, which also has real estate, food manufacturing and agro industry holdings. The bank is a niche player focused on loans to civil servants, with repayments taken monthly from payrolls. BMG operates mainly through in-house representatives in state companies. It also offers leasing and asset management services. * * * As reported in the Troubled Company Reporter-Latin America on June 26, 2007, Standard & Poor's Ratings Services raised its long-term counterparty credit rating on Banco BMG S.A. to 'BB-' from 'B+'. The rating was removed from CreditWatch Positive where it was placed June 11, 2007. S&P said the outlook is stable. On March 10, 2008, Moody's Investors Rating gave Banco BMG's US$250 million issue a Ba1 long-term foreign currency debt rating with a stable outlook and the bank's US$1 billion note program a Ba1 long-term foreign currency rating with a stable outlook and a Not Prime short-term foreign currency rating. |
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Today's Top Stories have been selected from the Troubled Company Reporter - Latin America. To receive the Full TCR-LA please CLICK HERE.
