World Markets

Brazil lender Banco Inter's shares rise after Bolsonaro approves foreign control

SAO PAULO, April 18 (Reuters) - Preferred shares in Brazilian digital lender Banco Inter SA were up 4 percent in early trading on Thursday, after the medium-sized bank received presidential approval to have up to 100 percent of its capital held by foreigners.

Banco Inter is controlled by Brazil's Menin family, which holds 57.9 percent of its capital and also controls homebuilder MRV Engenharia e Participações SA .

Thursday's rally followed a nearly 4 percent rise in the bank's shares on Wednesday, when Brazilian President Jair Bolsonaro's approval of foreign control was published in the official government gazette.

It debuted on the Sao Paulo stock exchange in April 2018, pricing its shares at 18.5 reais each. On Thursday, its shares were trading at 58.55 reais, with a market capitalization of 2.85 billion reais ($723.17 million).

"The move is positive for Banco Inter as it gives more flexibility for future changes, including a new share offering," analyst Regis Chinchila of Terra Investimentos said.

($1 = 3.9410 reais)


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