Itau and BMG in Payroll Tieup

Itau and BMG in Payroll Tieup

Bonds Structured Finance Brazil M&A

Itau Unibanco and Banco BMG have agreed to form a BRL1bn ($492m) payroll lending joint venture, the two Brazilian banks say. The deal allows Itau access to the fast-growing payroll lending segment, and allows BMG – at a time when costs of funding for mid-size banks has shot up – to continue lending in the sector and worry less about capital. Itau is to hold 70% in the vehicle, to be called Banco Itau BMG Consignado, and BMG 30%. The joint venture’s portfolio of loans is expected to reach BRL 12b

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