Credit Suisse has signed a strategic agreement with Modalmais, a Brazilian digital brokerage firm. The new agreement will enable the bank to purchase preferred shares equivalent up to 35 percent of the total capital of the brokerage firm, media reports said.
It is reported that the deal values the firm at approximately 5 billion Brazilian reais.
Under the terms of the deal, Credit Suisse will get access to Modalmais’ more than one million clients across the country. This will be in addition to expanding its digital banking and investment platform’s outreach in Brazil.
With that, the firm’s clients will get access to a select range of Credit Suisse’s investment products, including structured notes, funds, debt transactions and share offerings.
Marco Abrahão,chief executive officer of international wealth management for Brazil at Credit Suisse, told the media, “We are very excited about the future prospects of this agreement. Modalmais has a modern digital platform that can benefit our clients in Brazil. It also gives us access to an additional segment of clients.”
The Brazilian brokerage firm was established in 2015. Currently, it has more than $1.9 billion in assets under custody. The firm will also provide clients access to more than 400 funds from 140 managers, media report said. The strategic agreement will allow Credit Suisse to strengthen its presence in Brazil.