Fund Offers R$15 Billion for BRB’s Master-Linked Assets as Central Bank Weighs Deal

Overview

• The Distrito Federal governor said Friday that an investment fund offered about R$15 billion for part of BRB’s assets tied to Banco Master, with R$4 billion paid up front.
• The government said the formal proposal was filed with Brazil’s central bank for technical review and added that no public funds would be used.
• BRB described the structure as R$4 billion in immediate cash and about R$11 billion in subordinated stakes linked to the same assets, with detailed terms kept confidential.
• Bank leaders said a sale would ease liquidity, while they also seek a loan from the Credit Guarantee Fund, request R$6.6 billion from major banks, and prepare an April 22 shareholder vote on new capital.
• The assets trace to BRB’s failed purchase of Master credit portfolios flagged for suspected fraud, which left the bank with discounted assets booked at about R$21.9 billion face value, including roughly R$6.6 billion labeled higher risk.