Business

With $343.8 million from SotfBank and others, Banco Inter wants to be the sixth Brazilian online bank

Banco Inter has the potential to reach 1% of Brazilian payroll loans in the coming years

  • Banco Inter raised $343.8 million in a share offering this Monday, 29th
  • Japanese investment fund SoftBank purchased most of the shares
  • Banco Inter will use the resources to expand its loan book, invest in technology and new products, and also acquire other strategic companies

The first Brazilian online lender to do a public offering in 2018, Banco Inter raised $343.8 million (or 1.3 billion reais) in a share offering this Monday 29th. According to BrazilJournal and Reuters, the Japanese investment fund SoftBank was responsible for purchasing most of the shares and is expected to hold 10% of Inter’s capital.

With more than 2 million clients, Banco Inter wants to be the sixth online lending bank of Brazil. And for BTG Pactual analysts Eduardo Rosman and Thiago Kapulskis the company has a good chance of achieving its goal. 

In a written report prior to the offering of shares, they said that below-average interest rates and low default levels have transformed payroll loans into the darling of Brazil’s consumer finance business. For Rosman and Kapulskis, Banco Inter has the potential to reach 1% of Brazilian payroll loans in the coming years, which today are in the hands of a few large banks.

According to a statement to investors, Banco Inter said it will use the resources raised on Monday (29) to expand its loan book, invest in technology and new products, and also acquire other strategic companies.

Alongside with BTG Pactual, 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 were responsible for managing the offering.

Asked about it by LABS, Banco Inter press office said that the company would not comment on the results of the share offering yet.