BRB Approves Up to R$8.8 Billion Capital Raise as It Moves R$15 Billion in Master Assets

Overview

• Shareholders cleared a capital increase of up to R$8.8 billion in an extraordinary meeting to rebuild the bank’s buffers after losses tied to Banco Master transactions.
• The bank signed a memorandum with Quadra Capital on Monday to shift R$15 billion in Master‑origin assets into a fund that pays R$3–4 billion in cash now and converts the rest into subordinated fund quotas.
• Even with the transfer, BRB still needs fresh capital, and the Federal District government is seeking about R$6.6 billion in loans from the Credit Guarantee Fund and other banks, with public real estate and stakes in state firms under review as collateral.
• The Supreme Court’s Second Panel, which began voting Wednesday, has two votes to keep ex‑CEO Paulo Henrique Costa and an attorney in preventive detention, with Dias Toffoli recused and a deadline for votes on Friday night.
• Investigators say Costa received six luxury properties worth about R$146.5 million to push BRB into buying up to R$12.2 billion in sham portfolios, leaving R$21.9 billion in Master‑linked assets on the books and triggering severe liquidity pressure.