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Agi Raises USD 250 million in Debentures

São Paulo, May 19, 2022 – Agi announces their first issuance of financial debentures, an amount of USD 250 million. The operation will be covered by payroll loans to retired and pensioners of Instituto Nacional de Seguro Social (INSS) originated through Agibank S.A. The amount is composed by senior and junior debentures, being USD 200 million and USD 50 million, respectively.

The operation has a national long-term rating ‘AAA(exp)sf(bra)’ – with stable Outlook – issued by Fitch Ratings Brazil, and was structured and integrally absorbed by Citi Brazil, the biggest North American bank operating in the Country. The operation consists of securitization of performed receivables originated through payroll credit operations issued by Agi and destined to INSS beneficiaries. “We are diversifying the funding with a AAA rated operation, bringing sustainability and warranting consistency to the business. This issuing is extremely important for lengthening liabilities and will bring the funds required for us to reach great gains”, comments Thiago Silva, Financial & RI Officer of Agi.

The receivables will be granted to Vert-9 Companhia de Securitização de Créditos Financeiros (CSCF Vert-9), vehicle of specific purpose constituted for this operation by Vert Consultoria e Assessoria Financeira of Vert Capital group, responsible for the debenture’s issuance, since Banks cannot directly issue this instrument.

The term of the senior debentures is 9 years, with two years of maturity for principal payment, with interests paid monthly.

“The funding dedicated to payroll credit brings stability, since it will be used to fund this resilient portfolio that has been built with great discipline throughout the previous year. It’s important to highlight that we had record growth on this product last year, up from R$ 900 million in 2020 to almost R$ 4,5 billion in 2021”, comments Gabriel Zaneti, Agi’s Head of Treasury. “The stability brought by the secured and committed line is a fundamental pillar on which to sustain the payroll credit portfolio, especially when we see that the origination of INSS payroll loans represented 14% of all this product’s origination on the market in some months of last year, being among the highest shares between the institutions that operate this facility”, adds Silva.