Credit supply in Brazil has been a little puzzling recently. While private-sector banks have been much more careful, state banks have responded to government pressure to keep credit flowing.
No wonder then that government-controlled Banco do Brasil is turning to the international debt markets for help. Continue reading »
Another day, another Brazilian company outlining plans for an initial public offering.
On Wednesday, Banco Do Brasil, Latin America’s largest bank by assets, said it was seeking to raise as much as R$12.15bn ($6bn) from the spinoff of its insurance and pension unit, BB Seguridade.
But talk is cheap. Given the lacklustre IPO market in Brazil at the moment — the Bovespa index is down nearly 12 per cent since the start of the year — can Banco Do Brasil pull off what would be the world’s biggest IPO so far this year? Continue reading »
On the homepage of Banco do Brasil, Brazil’s largest bank, you can take out a loan to buy a car, renovate your house or buy electronics and home appliances. Indeed, never before in Brazil has it been so easy to borrow money from a bank. Record-low interest rates are expected to make things even more attractive for borrowers.
Tipping things even further in favour of borrowers is a push by President Dilma Rousseff to encourage banks, all of them but especially those controlled by the government like Banco do Brasil, to reduce borrowing costs to further fuel lending and get the economy moving. Continue reading »
If you’re ever in any doubt about which countries Brazilian companies are looking to for expansion, just follow the money, or rather the banks.
After buying a US lender last year to cater for the growing number of Brazilians setting up home in Florida, state-controlled Banco do Brasil is now targeting the rest of Latin America and China. Continue reading »
It’s not the industry that normally springs to mind when you think of Brazil, but insurance is fast becoming one of the country’s investment hotspots.
Growing income among Brazil’s new middle classes and a tight labour market are boosting demand for health and auto policies. Meanwhile, the vast infrastructure projects underway to get the country ready to host the World Cup in 2014 and the Olympics two years later also offer huge opportunities for insurance companies. Continue reading »