FAQ
FAQ
Bradesco Shares
Banco Bradesco has ADRs listed on the New York Stock Exchange (NYSE) under the ticker BBD. Bradesco also has preferred shares listed on the Madrid Stock Exchange (Latibex) under the ticker XBBDC. To buy or sell Bradesco’s ADRs and preferred shares, you should contact a stockbroker authorized to trade on these markets.
The decision of buying Common (ON) and Preferred (PN) shares back is made by the Board of Directors. According to the Law, the Buyback program expires in one year, which may be extend or not. The shares bought back are held in the Treasury of the Bank, until eventual sell or canceling.
Owners of Common Shares of are given vote writes , but the Preferred Shares not. On the other hand, owners Preferred Shares receive an extra 10% of Interest on Own Capital and Dividends.
The Law # 10,303, of October 31, 2001, included the Article 254-A in the Law 6,404, of December 15, 1976 (Corporation Law), setting that, in case of sale of the company’s control, the holders of voting shares not pertaining to the controlling block were assured a price at least equal to 80% of the amount paid per voting right share belonging to the controlling block. In order to protect the minority shareholders’ rights, on December 17, 2003 Bradesco included the tag along in its Bylaws (Paragraphs 1 and 2, Article 6), with rights higher than those established by Law, it means 100% for the common shares and 80% for the preferred ones.
Bradesco shares are traded in the São Paulo Stock Exchange – Bovespa in Reais, in New York Stock Exchange – ADR Level II in Dollars and Latibex – Madrid Stock Exchange in Euros. The ticker codes of Bradesco’s shares are: BBDC 3 (ON) and BBDC 4 (PN) – São Paulo Stock Exchange; BBD (PN) and BBDO (ON) – ADR Level II in New York; XBBDC – Latibex (Madrid Stock Exchange).
You can buy an ADR through a broker, just as you would U.S. securities.
ADRs
An ADR is a negotiable U.S. certificate representing ownership of shares in an non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, the dividends are paid to investor in U.S. dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. and foreign investors, and to provide a corporate finance vehicle for non-U.S. companies.
Companies that issue ADRs are generally looking to open access to foreign investors in the United States capital market. Any non-U.S. company interested in increasing capital or its U.S. shareholder base may issue ADR.
An American Depositary Receipt (ADR) is the actual physical certificate whereas an American Depositary Share (ADS) is the actual share. An ADR can represent any number of ADSs. The term “ADR” is often used to mean both the certificates and the securities themselves.
The concept of a DR (Depositary Receipt) also works in markets outside the U.S. For example, GDRs (Global Depositary Receipts) are DRs that are offered to investor in two or more markets outside the issuer’s home country.
Each ADR can represent one, more than one, or a fraction of underlying shares. The relationship between the ADR and the ordinary share is referred to as the ratio. Bradesco’s ratio is 1:1 (one underlying share equals one depositary share).
The depositary is a bank that provides share transfer services alongside a receipt depository program. This includes issuing and canceling ADRs, maintaining shareholder records, distributing dividends paid in dollars, soliciting votes from ADR holders and carrying out strategic auxiliary activities for the company’s Investor Relations department.
ADRs allow you to diversify your portfolio with foreign securities easily. In addition, ADRs trade, clear and settle in accordance with U.S. market regulations. If an ADR is exchange-listed, investor also benefit from readily available price and trading information.
The payments of dividends and distributions in cash, on our shares that back the ADRs, are made directly to the depositary bank abroad, which is responsible for transferring them to the stockholders within an average period of ten days after the payment is made in Brazil.
You can consult the history of dividend payments in the section “Dividends and distributions”, using the links below:
ADRs can be found on the New York Stock Exchange (NYSE) as well as on Nasdaq. In addition, ADRs also trade Over the Counter (OTC). Brokers can access information about OTC securities through OTC Markets’ website. Trading is conducted through market makers in that particular security. On November 21st, 2001, Banco Bradesco successfully listed its ADRs (PN) on the NYSE, with the ticker BBD, increasing transparency for investors, with financial statements in US GAAP and increasing the liquidity of the Bank’s shares. On March 13th, 2012, it listed its ADRs (ON) also on the NYSE, with the ticker BBDO.
If you are an investor with a position on the Depository Bank’s books, please contact us at 1-888-BNY-ADRS (1-888-269-2377) for calls made within the U.S. or 1 201 680 6825 for international calls. You can also contact BNY via email at: shrrelations@bnymellon.com.
For questions related to ADRs, please refer to the Depositary Bank’s website at adrbnymellon.com. For specific ADR settlement questions, please contact: DRsettlements@bnymellon.com.