Davis Polk advised BB Securities Ltd., BNP Paribas Securities Corp., Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Standard Chartered Bank as initial purchasers on the Tier 1 offering by Banco do Brasil S.A., acting through its Grand Cayman branch, of its 9.25% perpetual non-cumulative junior subordinated securities in an aggregate principal amount of $1 billion.
Headquartered in Brasília, Banco do Brasil is the largest bank in Latin America in terms of total assets. This transaction was the first issuance ever by a Latin American bank of Tier 1 capital securities structured to comply with the expected implementation of Basel III.
The Davis Polk corporate team included partner Maurice Blanco, associate Andrew Lyle and foreign temporary associate Fernanda Desio (admitted only in Brazil). The tax team included partner Po Sit and associate Michael Bretholz. Joshua Sills was the legal assistant for the transaction. Members of the Davis Polk team are based in the São Paulo and New York offices.
Pinheiro Neto Advogados advised the initial purchasers as to Brazilian law. Clifford Chance US LLP, Campos Mello Advogados and Ogier advised Banco do Brasil as to U.S., Brazilian and Cayman Island law, respectively.