The board of Banco Mercantil de Investimentos SA has approved the bank's capital increase, through a private subscription of shares, worth 60.0 million Brazilian reais.
The capital increase will involve the issuance of 3,000,000 common shares with a par value of 17.00 reais apiece and a subscription price of 20.00 reais each, the bank said.
Of the amount, 51.0 million reais, corresponding to the par value, will be incorporated with the capital stock. Meanwhile, the remaining 9.0 million reais will be recorded in the capital reserve. As a result, the bank's capital will increase to about 82.0 million reais from about 31.0 million reais.
Shareholders as of Dec. 13 are entitled to the shares issued in the capital hike. As of Dec. 14, the bank's shares will be traded without the right of subscription.
The transaction aims to strengthen the bank's capitalization to support the expansion of its business and to maintain an adequate ratio of its shareholders' equity to risk-weighted assets.
As of Dec. 8, US$1 was equivalent to 3.31 Brazilian reais.
