The board of Banco ABC Brasil SA approved a share buyback program that will allow the bank to repurchase up to 7.10% of its preferred shares, according to a company filing.
The company said that the repurchases, which can total up to 7,730,093 shares, would generate greater shareholder value while also providing capacity for variable remuneration payments to management.
The program will run for 18 months, ending on Sept. 25, 2020.
The repurchases will not have any impact on the bank's administrative structure or shareholder composition, the bank added.
As of year-end 2018, Banco ABC Brasil had more than 45 million reais available in capital reserves, and close to 1.20 billion reais in profit reserves.
Santander Corretora de Câmbio e Valores Mobiliários SA, Itaú Corretora de Valores SA and BTG Pactual Corretora de Títulos e Valores Mobiliários SA will serve as intermediaries for the buyback operation.