BRAZIL · BANKING
Key Facts
—The headline: Brazil’s six largest banks will guarantee a federal-district loan to recapitalize the Banco de Brasília, in a deal homologated by the Supreme Federal Tribunal on Thursday, in the country’s largest BRB bailout to date.
—The syndicate: Itaú Unibanco, Bradesco, Santander Brasil, BTG Pactual, Banco do Brasil and Caixa Econômica Federal form the consortium offering loan guarantees to the operation.
—The structure: The Federal District contracts a loan of around 6 billion reais from the Fundo Garantidor de Crédito, with counter-guarantees drawn from the FPE and FPM federative-participation funds, without any federal-government backing.
