Banco Bradesco has canceled a BRL 3bn ($757m) capital raise due to a stock market rout that has sent the benchmark gauge near a seven year low. The Brazilian bank said on Friday it would not be able to meet its target of raising R$31bn, or about half of what was needed, by June 30, as investors reacted negatively to news Bradesco had agreed to buy HSBC Holdings' unit in Brazil for $5.2bn last August, however, as we noted this week, that transaction is now under review by the nation's antitrust authority
Banco Bradesco has canceled a BRL 3bn ($757m) capital raise due to a stock market rout that has sent the benchmark gauge near a seven year low. The bank had planned to sell 82.6m new voting shares at 19.20 reais each and 92.2m preferred at 17.21 reais apiece, which was approved by the board back in December; however, Brazilian equities have tumbled since then and the bank last week reported a 27% jump in provisions for bad loans in the fourth quarter, adding that the total would rise again this year. Bradesco had agreed to buy HSBC Holdings' unit in Brazil for $5.2bn last August, however, as we noted this week, that transaction is now under review by the nation's antitrust authority