Portugal’s CGD group increases capital in Brazilian subsidiary

22 February 2010

Lisbon, Portugal, 22 Feb – Portugal’s state-held financial group Caixa Geral de Depósitos (CGD) has increased in Brazil the share capital of Banco Caixa Geral Brasil from 123 to 400 million reais, indicate data from the institution’s annual report and accounts.

The CGD group opened the new subsidiary, called Banco Caixa Geral Brasil, in February 2009 after a four-year absence in that market.

In December of last year the Brasil Economico newspaper reported that CGD’s plans for 2010 include the opening of a branch in Rio de Janeiro and the launch of an investment fund in holdings focused on the infrastructure sector.

CGD’s new bank in Brazil began operations in the first half of 2009 and focuses on large-size companies. It has already enabled the Portuguese financial institution to record a significant contribution from the Brazilian market.

In the project finance and structured finance business CGD was involved in operations worth nearly 1.67 billion euros, of which most (84 percent) were in Portugal. Abroad, the leader was Brazil, a market where CGD was involved in operations worth 133 million euros (8 percent of the total).

The re-entry in Brazil was one of the year 2009 highlights in the CGD accounts for a financial year marked at international level by the entrance in the Angolan market via the stake acquired in Banco Caixa Geral Totta de Angola (BCGTA). (macauhub)