January 1, 2013
Just how Basel III will affect banks’ capital requirements in Brazil is still far from clear. So when Banco do Brasil introduced a new type of hybrid security in January 2012 that would be Basel III compliant — irrespective of what that might ultimately mean — it was thinking well ahead of its competitors.
The $1 billion hybrid tier 1 perpetual NC11 bond was the third ever Basel III-compliant bond – as well as a first in emerging markets – and has set a template for other financial institutions as they prepare to adapt to a new regulatory environment.
“This is a landmark transaction that has changed the landscape of investments available,” says Marcelo Delmar, head of LatAm DCM at BNP Par
Banco do Brasil $1bn Hybrid Tier I Perpetual Bond