Brazil’s Cruzeiro do Sul to sell shares in offer

SAO PAULO, April 19 (BestGrowthStock) – Banco Cruzeiro do Sul
(CZRS4.SA: ), a Brazilian bank that specializes in consumer
credit, offered to sell 428 million reais ($242 million) worth
of new and existing stock to replenish the lender’s capital
base.

The bank said on Monday it will offer 13.6 million new
non-voting stock and almost 16 million existing shares, of
which 14.6 million are owned by shareholders, according to a
newspaper statement. The value of the deal was calculated using
the stock’s close price of 12.58 reais on Friday.

The offering could be increased by 4.4 million shares if
demand outpaces supply, the statement said.

Brazilian banks are taking on debt in local and
international markets and selling shares to boost their capital
and ramp up lending without hindering their solvency ratios.

The shares should start trading on April 30 in Sao Paulo.

Sao Paulo-based Cruzeiro do Sul hired Bank of America
Merrill Lynch (BAC.N: ), UBS (UBSN.VX: ) and BTG Pactual to manage
the offering, the newspaper statement said.
($1=1.766 reais)

Investing Analysis
(Reporting by Guillermo Parra-Bernal; Editing by Derek Caney)

Brazil’s Cruzeiro do Sul to sell shares in offer