Banco Central authorizes setup of Randon Bank
Release from Departamento de Organização do Sistema Financeiro (Financial System Organization Department) dated August 6 informs that the Company is authorized to create a Multiple Bank.
During meeting held on July 23rd, Banco Central do Brasil expressed its favorable opinion on the creation of Randon Bank. As of the official communication made on this Thursday, August 6, to our Executive Board, Randon S.A.- Implementos e Participações is authorized to set up a multiple bank, which will begin with an initial capital of about R$ 25 million. The Bank will operate within the national financial market and will develop financial products and services aimed at boosting Randon Companies businesses.
The process began in December 2007, when the Board of Directors of the Companies authorized the Executive Board to send an application request to Banco Central do Brasil to open a Multiple Bank. As of the authorization we have received, the Company has up to 90 days to formalize its application request for the operation of the Bank.
Among the reasons to set up the Bank, the Company highlights the current trend to open niche market financial institutions, the significant amounts in customers` account raising the working capital, economy of fiscal amounts, experience with credit management to customers through our “Consórcios” company (coop-payment plans), leverage of the companies of the Group, and possible attractive return on the investment.
Caxias do Sul, August 7, 2009.
Astor Milton Schmitt
Investor Relations Director