Material Fact - Brasilprev's capital increase
Pursuant to the Federal Law No. 6,404/76, article 157, paragraph 4, and to the Brazilian Securities and Exchange Comission Rule No. 358/02, BB Seguridade Participações S.A. (“BB Seguridade”) hereby informs that its Board of Director (“Board”) has approved a capital increase for Brasilprev Seguros e Previdência S.A. (“Brasilprev”) which amounts up to BRL 600 million.
BB Seguros Participações S.A. (“BB Seguros”), the wholly-owned subsidiary of BB Seguridade that holds the direct investment in Brasilprev, will subscribe up to BRL 449.97 million of the total capital raise to keep the same economic stake of 74.995%.
Although Brasilprev’s projection models do not point out to capital insufficiency, the partners BB Seguros and Principal Financial Group decided for the prudential capitalization, in addition to the amount raised via debt issuance, as announced to the market on June 15th, 2021, due to the volatility of the macroeconomic scenario and the spike of 14.4% in the IGP-M inflation rate, year-to-date.
In this context, the Board has also approved the distribution of BRL 1,040,000,000.00 (one billion and forty million reais) as dividends, which will be paid on a date to be announced after the 2Q21 earnings release, scheduled for August 2nd, 2021.
Brasilia (DF), June 22nd, 2021