The stock rallied 7.6 percent to 15.49 reais at 10:58 a.m. in Sao Paulo, the biggest advance on a closing basis since it started trading in October 2009. It was the best performance on the benchmark Ibovespa, which added 0.3 percent.
Santander said yesterday in a regulatory filing that it will issue debt to finance the equity payout. The bank will maintain a 21.5 percent capital ratio, based on a formula that weights assets in relation to their perceived riskinesss, according to the filing. If approved by shareholders, the plan would be implemented in early 2014.
“The bank was not especially efficiently set up with its balance sheet, and this will improve that,” Bill Rudman, who helps manage $400 million of emerging market stocks at Blackfriars Asset Management in London, said in a phone interview.
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