ADR – Level I

Banco do Brasil (BB) established a sponsored Level I ADR (American Depositary Receipt) program on December, 2009. BB´s shares are trading Over-the-Counter (OTC) in the USA as American Depositary Receipts (ADRs). The ratio between BB’s voting shares and the ADR is 1:1, i.e. one BB’s voting share represents one ADR.

The depositary bank of the program is BNY Mellon and Banco do Brasil S.A. is the custodian of the underlying shares.

Banco do Brasil S.A.
Ticker: BDORY
Structure: Sponsored Level I ADR
Exchange: Over-the-counter (OTC) market
Ratio (ADR:VS):  1 ADR : 1 VS (voting shares)
DR ISIN: US0595781040
CUSIP: 059578104

ADR contact information
www.adrbnymellon.com

For ADRs holders registered in the depositary bank books, contact:
BNY Mellon Shareowner Services

Addresses:
P.O. Box 30170
College Station, Texas 77842-3170

211 Quality Circle, Suite 210
College Station, Texas 77845

E-mail: shrrelations@cpushareownerservices.com

Telephone number USA: 1-888-269-2377
Telephone – other locations: 1-201-680- 6825

Website: www.mybnymdr.com

As the depositary bank, BNY Mellon performs the following roles for ADR holders as further detailed in the Deposit Agreement:

Records and maintains the register of ADR holders;
Distributes dividends in U.S. dollars (if applicable);
Facilitates the voting process and the exercise of the voting rights of ADR holders in Shareholders Meetings if requested by the Company and pursuant the Deposit Agreement;
Issues and cancels BB ADRs; and
Distributes Company call notices and Shareholders Meeting documents (if applicable).

For those holders whose are not registered because their shares are held through a ‘Street name’ (nominee account), your nominee will receive company documents from BNY Mellon to distribute to ADR holders. Holders in this situation must inform the nominee the intention to receive such documents and to be able to exercise your vote through the depositary bank in Shareholders Meetings (if applicable).

Frequently Asked Questions

ADR-FAQ

What is an American Depositary Receipt (ADR)?

An American Depositary Receipt (ADR) is a US dollar denominated negotiable certificate that represents ownership of shares in a non-US company. Each ADR is issued by a U.S. depositary bank (which is a bank in the US which oversees all the stock transfer and agency services in connection with a depository receipt program) and represents one or more shares of a foreign stock or a fraction of a share. The price of an ADR is often close to the price of the foreign stock in its home market, adjusted for the ratio of the foreign company’s shares to ADRs. The price of an ADR is also affected by the impact of the price of the US currency. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by US investors. BB’s ADRs represent BB’s voting shares deposited in the depositary bank (BNY Mellon), to underlie such certificates and carry the rights attached to them as detailed in the Deposit Agreement.

In addition, potential buyers of Banco do Brasil’s ADRs should read, with special attention, the reports of the Bank regarding the Risk Factors available on the website: www.bb.com.br/ir, especially the sections “4. Risk Factors” and “5. Risk and Internal Control Management” in the Reference Form.


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What are the benefits of ADRs to US investors?

Some U.S. investors may prefer to purchase ADRs rather than voting shares in the issuer’s home market because ADRs are traded, cleared and settled in US Dollars and in compliance to U.S. market conventions. ADRs allow easy comparison to securities of similar companies as well as access to price and trading information. ADRs holders also receive dividends in US dollars (if applicable).


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What kind of companies issue ADRs?

ADR issuers are typically large non-U.S. corporations seeking to raise capital in the U.S. or increase their base of U.S. investor.


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What is the difference between a Registered ADR holder and a Beneficial ADR holder?

A registered holder is one whose name appears on the books of the depositary bank. The registered holder is considered the owner of record. A beneficial holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.


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What is an ADR ratio?

This is the relation between the number of ADRs and the number of voting shares of the Company. For Banco do Brasil, each ADR represents 1 voting share.


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What is the difference between an ADR and an ADS?

An ADR (American Depositary Receipt) is a negotiable certificate issued by a depositary bank representing a specific number of shares of a non-U.S. company traded on a U.S. stock exchange. An ADS (American Depositary Share) is the share issued under the ADR agreement which is actually traded.


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Is there incidence of IOF (Financial Transaction Tax) on ADRs?

No, there is no incidence of IOF. As of December 24, 2013, the Brazilian Federal Government eliminated the aliquot of 1.5% which was in force from 2009.


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What is a sponsored Level 1 ADR program?

In a Level 1 ADR program, the ADRs are not listed on a US stock exchange, but are traded in the US Over-the-Counter (OTC) market, mainly on the OTC Markets Group electronic market platform (see: http://www.otcmarkets.com/home).


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Where are BB’s ADRs traded?

BB’s sponsored Level 1 ADRs are traded in the OTC (over the counter) market. You can reach more information on OTC Markets Group website (http://www.otcmarkets.com) and BNY Mellon website (http://www.adrbnymellon.com/dr_profile.jsp?cusip=059578104)


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What are BB’s ADR ticker symbol, CUSIP code and ISIN code?

Banco do Brasil S.A.
Ticker: BDORY
Ratio (ADR/VS) : 1 ADR = 1 VS (voting share)
DR ISIN code: US0595781040
CUSIP code: 059578104


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How do I convert my voting shares into ADRs?

The conversion of voting shares into ADRs or ADRs into voting shares must be done through your broker or investment advisor.


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How can I check how many ADRs I hold?

If you hold your ADRs through a broker, investment advisor or custodian in a “streetname”, please contact your broker, investment advisor or custodian. Otherwise, you can contact the deposit bank:

BNY Mellon Shareowner Services
E-mail: shrrelations@cpushareownerservices.com

U.S telephone number: +1-888-269-2377
Telephone – other locations: 1-201-680- 6825

Website: www.mybnymdr.com


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What can I do if I lose my ADR certificate, dividend check or tax voucher?

If your certificate has been lost, stolen or destroyed, notify BNY Mellon through the hotline + 1-888-269-2377 (U.S. telephone number). Be sure to have your Social Security number in hand.


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Is it easy to get information and updates on Banco do Brasil?

Information is widely available on Banco do Brasil’s website https://www.bb.com.br/ri or https://www.bb.com.br/ir. Investors can sign up to receive information releases in English on the Company’s website (if applicable). Trading information is readily available on depositary bank’s website, BNY Mellon (http://www.adrbnymellon.com/dr_profile.jsp?cusip=059578104) or on the OTC Markets Group website (http://www.otcmarkets.com).

Alternatively you may contact BNY Mellon shareholder service in the following numbers:
U.S. telephone number: +1-888-269-2377
Telephone – other locations: +1-201-680- 6825


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How do I obtain historical share prices of BB’s ADRs, for the purpose of completing my tax return?

Historical share prices for BB’s ADRs can be found on BNY Mellon website (http://www.adrbnymellon.com/dr_profile.jsp?cusip=059578104) or on the OTC Markets Group website (http://www.otcmarkets.com).


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How is the ADRs remuneration paid and taxed?

ADRs remuneration, if applicable, is paid in U.S. dollars and the tax rules are set out in the Deposit Agreement. Please discuss with your investment and tax advisor in case of doubts about taxation.


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