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XP prices IPO above target range; Finvest seeks digital bank license


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XP prices IPO above target range; Finvest seeks digital bank license

* XP Investimentos SA said it priced its initial public offering of 72,510,641 class A common shares at $27.00 apiece, above the $22.00 to $25.00 target range the Brazilian financial services company announced earlier. Sources with knowledge of the matter told Reuters that XP raised $2.25 billion and was valued at $14.9 billion. Demand reportedly reached 14x the offering.

* Brazilian credit platform Finvest is seeking central bank approval to become a digital bank, Valor Econômico reported. A license would allow the company to lower costs and reduce its reliance on partner banks.


* U.S. House Democrats said they reached a deal with the Trump administration to advance a revised version of the United States-Mexico-Canada Agreement after months of negotiations. House Speaker Nancy Pelosi said a revised USMCA will be put to a vote in the House, though a date has not yet been specified.


* Digital Colony Partners LP acquired Highline do Brasil II Infraestrutura de Telecomunicações S/A from Pátria Investimentos Ltda. Financial terms of the transaction were not disclosed.

* Brazil's Congress approved a package of bills that will make about 30 billion reais of credit available to ministries and other public bodies, Folha de S.Paulo reported.

* Banco do Brasil SA CEO Rubem Novaes said he is in favor of the state-controlled lender's privatization, but the move is unlikely since Brazilian President Jair Bolsonaro has already dismissed the idea, Reuters reported.

* Banco Nacional de Desenvolvimento Econômico e Social filed a lawsuit to force the sale of a hydroelectric dam owned by Nova Engevix in an effort to recoup 512.4 million reais of debt owed to the development bank, Reuters reported.

* Brazil's central bank confirmed the cancellation of Banco NEON SA's operating license on Dec. 10, Valor Econômico reported. The regulator ordered Banco NEON's liquidation in May 2018, citing regulatory violations and the impairment of the company's financial condition.

* Banco BMG SA said its board approved the opening of a buyback program allowing the bank to repurchase up to 11,994,003 preferred shares. The program will run from Dec. 11 to Dec. 8, 2020.


* Citigroup Global Markets saw a nearly 65% take-up by the Dec. 9 early deadline of its tender offer to purchase up to US$750 million worth of Bancolombia SA debt maturing in 2020 and 2022. As of the deadline, debt holders tendered some $81.4 million worth of 6.125% subordinated notes due 2020 and about $404.6 million of 5.125% subordinated notes due 2022.

* Scotiabank expects overall bank lending in Peru to grow between 7% and 9% in 2020 following an expected expansion of 6% to 8% this year, Gestión reported.


* Analysts surveyed by Chile's central bank expect the country's GDP to shrink 4% in November, following a 3.4% contraction in the previous month, as protests continue to impact economic performance. The analysts also see the central bank holding its monetary policy rate at 1.75% over the next 11 months.

* Alberto Fernandez, who was sworn in as Argentina's new president on Dec. 10, said in a speech that the recession-hit economy must return to growth in order for the country to exit a "virtual default," Reuters reported. "There are no debt payments that can be sustained if the country does not grow," Fernandez said.


* Moody's said it has a stable outlook for the Latin American asset management industry in 2020. The sector will continue to see sound growth in assets under management, which, along with steady management fees, will underpin credit worthiness for the region's asset managers, said Moody's analyst Jose Montano.


* Asia-Pacific: China scraps insurance JV ownership limits; Philippines probes Westpac

* Middle East & Africa: QNB names CEO; Fitch downgrades HSBC's UAE unit; Tunisian insurer plots IPO

* Europe: Credit Suisse cuts key target; HSBC's Swiss unit fined; UBS suffers court defeat

Pablo Jimenez Arandia contributed to this article.

The Daily Dose has an editorial deadline of 8:00 a.m. São Paulo time, and scans news sources published in English, Portuguese and Spanish. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.