SAO PAULO, Dec 10 (Reuters) - State-controlled Banco do Brasil SA completed a bond buyback plan on Thursday with the repurchase of about 86 percent of the amount originally proposed, as an incerasing number of Brazilian companies move to reduce their exposure to foreign currency-denominated debt.
The bank bought back $300 million worth of 9 percent perpetual bonds and $112.8 million of 9.25 percent perpetual subordinated bonds, as well as $100 million worth of the 3.875 percent senior note due in 2022, according to a securities filing.
Banco do Brasil sought to buy as much as $600 million worth of the securities. The bank will book about 210 million reais ($56 million) in one-time gains stemming from the repurchase when it releases fourth-quarter results around February, the filing said.
For many Brazilian banks and companies, long-term dollar-denominated funding has turned expensive after a 30 percent drop in the real this year stoked hedging costs. Last quarter, Brazilian markets had their worst rout in 13 years on concerns that slowing Chinese growth and escalating political turmoil may lead the country to lose investment-grade ratings next year. (Reporting by Guillermo Parra-Bernal; Editing by Greg Mahlich)