Banesco Banco Universal issued preferred shares in the stock market
Banesco Banco Universal issues between 24 March and 10 April, 1.250.000.000 new preferred shares in order to strengthen its equity base through the addition of new partners, giving priority to small investors who have at their disposal an investment. During the first year, Banesco offers buyers a fixed dividend of 19.5%.
To be a shareholder of Banesco, the applicant must call a 0500-ACCION-1 (0500-2224661), enter www.banesco.com or contact any of the 442 agencies of this financial institution located throughout the country. The share value is Bs.F. 0.10 and the minimum investment amount is Bs.F. 100, redeemable after three years. The shares can be paid by direct debit from the customer’s account in Banesco or check.
The preferred shares are equity instruments of Banesco, a financial institution with a strong track record of profitability, growth and innovation. Such shares are investment instruments with a variable output from the second year attached to the lending rate of the market, which makes them attractive.
In the allocation of shares to small investors will be prioritized with amounts between Bs.F. 100 and Bs.F. 2000, increasing allocations progressively to higher orders to Bs.F. 100,100.
Banesco will hold road shows in Caracas (Ciudad Banesco, Bello Monte, at 5:30 pm), Valencia (Hotel Inter-Continental at 5:00 pm) and Maracaibo (Club Nautico at 5:00 pm), on 25 March, April 2 and April 3 respectively.
An attractive instrument
The preferred shares are equity securities that represent the following rights to their owners:
- Preferred Economic Rights: Preferred shareholders are entitled to a cumulative and preferential dividend
- Rescue Rights: preferred shareholders have the option of selling the issuer and the issuer the option to buy them from the investor from the third year
- Restricted Political Rights: preferred shareholders exercise limited voting rights on the company
The preferred shares are entitled to a periodical cumulative preferential dividend
- Preferred Character: The dividend will be paid to preferred shareholders with priority over dividends that may correspond to common shareholders
- Cumulative nature: If at some time had not sufficient income or dividend for the income guidelines, the difference will be accumulated (not capitalized) and paid in the next fiscal year
The preferred shares incorporate the following options for their rescue, which can be performed quarterly after the 12th quarter (3rd year).
- Sale option (investor): The investor may sell all or part of its shares to the issuer at face value of the number of shares to rescue plus dividends caused corresponding to that number.
- Purchase option (issuer): The issuer may buy all or part of the shares issued to pay the face value of the number of shares plus dividends to rescue caused of the number of shares corresponding to the percentage to be rescued
The preferred shares are entitled to vote for:
- Approve or disapprove the bank’s financial statements
- Approve or disapprove bylaw amendments where their rights are modified
- Election of Commissioners and their alternates
Why invest in Banesco?
- The first bank in the country and has been a leader in the development of the Venezuelan financial sector.
- The institution has experienced continuous growth since its foundation (1986).
- The bank has grown on financial innovation and optimism about the prospects for development.
Accumulated results in the second half of 2007 confirm the leadership of the institution in the national financial system:
Total Assets: Bs.F. 27,700 million
Total Loans: Bs.F. 16.207 million
Total Public Deposits: Bs.F. 24.297 million
Total Equity: Bs.F. 2,150 million
Total Managed Resources: Bs F. 28.643 million
To date, the entity has more than 12,000 employees, more than 4 million customers, more than 4 million plastics (1 in 4 of the country), 442 agencies (the largest national network), 44,113 ATMs and 1174 points of sales (1 of 3 transactions).