History and Characteristics

The Banco do Brasil’s Board of Directors, with the aim of enhancing the process for capital increase, in a meeting held on May 3, 1996, approved and submitted to the Extraordinary Shareholders’ Meeting (ESM) a proposal for issuance and cost-free distribution of subscription warrants to the shareholders. In a meeting held on June 17, 1996, the ESM accepted the Board of Directors’ proposal and approved unanimously the free issuance of the subscription warrants.

Each warrant granted to its holder the right to subscribe to 0.56067 of a common share and 0.43933 of a preferred share, so as to maintain the proportionality of the capital stock of Banco do Brasil dated on June 17, 1996.

The warrants represent an available right that can be waived, i.e., the subscription warrants holders are not required to bring forward or exercise the right provided for in the securities.

The subscription warrant holder may trade the warrant right on stock exchanges at any time.

The subscription warrants are of the book-entry class, without issuance of a certificate.

On June 17, 1996, the subscription warrants were credited to the shareholding position of all BB shareholders, in a proportion of one warrant for each share held on that date, as follows:The term for exercising the right to subscription, partly in common shares and partly in preferred shares, for each one of the series, was the following:

Series Number of Warrants Issued % of Capital Common Preferred Limit Date/th>
A 142,394,462,616 20 79,836,303,355 62,558,159,261 06.30.2001
B 213,591,693,924 30 119,754,455,032 93,837,238,892 06.30.2006
C 355,986,156,540 50 199,590,758,387 156,395,398,153 06.30.2011
Total 711,972,313,080 100 56.07% 43.93%

The term for exercising the right to subscription, partly in common shares and partly in preferred shares, for each one of the series, was the following:

A = March 31, 2001 to June 30, 2001
B = March 31, 2006 to June 30, 2006
C = March 31, 2011 to June 30, 2011

A subscription warrant right not exercised up to the limit date for each series will be automatically cancelled.

The exercise price was R$ 8.50 per thousand shares subscribed, monetarily restated by the “IGP-DI” (General Price Index – Domestic Supply) of the Getúlio Vargas Foundation, up to the date of subscription.

The Shareholders’ Meeting of June, 7th 2002 approved to apply in the subscription warrants, series “B” and “C” the same conversion rules adopted in the conversion of preferred (PN) into common shares (ON). Thus, each subscription warrant gave its holder the right to subscribe 1.043933 ON [0.56067 ON + (0.43933 PN x 1.1)] in the terms established for the year 2006 and will give the right for 2011.

On November 12, 2003, the Extraordinary General Meeting approved the exchange of each thousand (1,000) shares/subscription warrants for one (1) share/ subscription warrant.

On April 25th 2007, Banco do Brasil’s Shareholders’ Meeting approved a 200% split of its shares (BBAS3), which means two new shares for each one existing share. This split was accomplished in Bovespa from 06.04.2007. As the subscription warrants series “C” (BBAS13) did not split, the conversion ratio was modified. Fron this date on, each warrant gives its holder the right to subscribe to 3.131799 common shares (ON).

Updated 12/10/2018 at 03:02 pm