The letter paves the way for Agibank's long-term strategic
expansion
SAO
PAULO, July 18, 2024 /PRNewswire/ -- Agibank, a
bank that has been redefining the service for non-digital native
Brazilians, announced today that it has received a non-binding
letter of intent for funding lines and capital markets issuances
that may involve an amount of up to US$ 7.4
billion (approximately R$ 40
billion) from Citi.
"This letter of intent from Citi represents another important
step in Agibank's journey. It reflects the market's confidence in
our ability to grow in a sustainable and innovative way. We are
committed to using potential resources to expand our presence and
improve the experience of our customers, especially those with low
income who are often overlooked by large banks," said Glauber Correa, CEO of Agibank.
To demonstrate the solid relationship between Agibank and Citi,
the parties closed on this date another capital markets
transaction, a financial debenture issued by Vert-9, backed by
credit contracts of payroll loans to retirees and pensioners of the
Brazilian Social Security Administration (INSS). These credits are
underwritten by Agibank, in the total amount of R$ 2.3 billion, with Citi as the senior debenture
holder in the amount of R$ 1.6
billion.
This is the second transaction of the same nature executed
between the parties and aims to further strengthen Agibank's
ability to serve a rapidly expanding market. The funds will allow
Agibank to rapidly increase its offer of credit and services,
directly benefiting its customers. This operation will boost the
bank's hybrid strategy, which combines a robust digital platform
with almost a thousand physical smart hubs throughout
Brazil.
In the last five years, Agibank has grown five times more than
the market average, and the agreement of intent with Citi is an
important step to maintain the expansion trajectory. This is the
second letter received by the company in the last 60 days, with the
first involving an amount of US$8
billion. These negotiations consolidate Agibank as an
innovative financial institution.
"These letters are the result of our good relationship with the
market, always valuing proximity to major players and the
diversification of our funding sources, in order to ensure robust
and consistent growth of Agibank in the timeline," commented
Marcello Dubeux, Chief Financial and
Investor Relations Officer at Agibank.
In the first quarter of 2024, Agibank's ROAE (Return on Average
Equity) reached 42.4%, highlighting the institution's efficiency
and profitability. "This letter of intent will further strengthen
these indicators, providing a solid foundation for future growth,"
Dubeux concluded.
About Agibank
We are a bank with a unique business model in Brazil. Our focus is to serve a large part of
the population that has lower income and is not digital native,
which traditional and digital-only banks cannot serve. We are
revolutionizing this segment with a hybrid business model, which
combines a fully digital bank and a network of approximately 1,000
"smart" hubs spread throughout the Brazilian territory. We offer
financial products and face-to-face and digital service customized
for this customer profile, ensuring a great competitive advantage
in this market, which allows us to win more and more customers,
with strong and lasting relationships.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/agibank-receives-us-7-4-billion-letter-of-intent-from-citi-to-boost-growth-and-innovation-302200673.html
SOURCE Agibank