BTG Posts Up to $2 Billion in Collateral for FGC Credit Line

  • Brazil's deposit-guarantee fund provided line to BTG on Friday
  • Chairman says he's now `comfortable' with liquidity position

Grupo BTG Pactual SA put up between 7.2 billion reais and 7.5 billion reais ($2 billion) in collateral to back a 6 billion-real credit line from Fundo Garantidor de Creditos, the nation’s privately backed deposit-guarantee fund.

BTG originally offered 8 billion reais for consideration, Caetano de Vasconcellos, FGC’s legal director, said in an interview Friday.

BTG’s shares and bonds have tumbled since Nov. 25, when then-Chairman and Chief Executive Officer Andre Esteves was jailed in connection with a corruption probe.

“I am now comfortable with our liquidity position, but will continue to push for further asset sales over the weeks to come,” Chairman Persio Arida said in a letter to clients Friday after the credit line was announced.

An official at BTG declined to comment on the collateral.

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