Japan’s Softbank Group Invests in Brazilian Fintech Banco Inter

RIO DE JANEIRO, BRAZIL – Reuters reports that Brazilian online lender Banco Inter SA raised R$1.3 billion (US$343 million) in a share offering that lured Japan’s Softbank Group as an investor, a source with knowledge of the matter said on Monday.

The bank priced its units, comprised of one common share and two preferred shares each, at R$39.99, the source added, without disclosing the number of shares acquired by Softbank.

Earlier this month, the bank said it would raise roughly R$1 billion to expand its loan portfolio, invest in technology, and acquire companies.

Investment banking units of Banco Bradesco SA, Goldman Sachs & Co, Banco BTG Pactual SA, JPMorgan Chase & Co, Banco Santander Brasil SA, and state-owned Caixa Economica Federal managed the offering, says Reuters.

The share offering comes fifteen months after Banco Inter went public on the São Paulo stock exchange. Since then, it has grown at a breakneck pace, with the number of clients surging to 2.5 million from roughly 500,000 in March 2018.

Brazilian financial start-ups, such as Banco Inter and Nubank, have lured clients by offering no-fee bank accounts, challenging traditional banks.

Banco Inter is controlled by Brazil’s Menin family, which also controls homebuilder MRV Engenharia e Participações SA.

Brazilian financial blog Brazil Journal reported earlier that Banco Inter had lured Softbank, buying almost 1 billion in units.

Earlier this month, Softbank led a $231 million new financing round for Brazilian lending platform Creditas.

(Source: Reuters)

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