Banco CNH Industrial carries out new issuance of Financial Letters

Banco CNH Industrial concluded, on September 28th, its seventh public issue of Letras Financeiras - second of 2022, worth R$700 million. The issue exceeded R$1,2 billion in demand, reinforcing its strong presence in the country's captive banking market and investors' confidence in the financial institution, exceeding expectations in a volatile period, such as the election.

Itaú BBA led this action, followed by Santander and Banco Safra and the offer was structured in series of two, three and four years.

The portfolio of resources raised via public issues of Letras Financeiras from Banco CNH Industrial doubled compared to 2021, which means a greater supply in long-term operations carried out to support own financing of agricultural machinery, CNH Industrial construction equipment and commercial vehicles from the Iveco Group. “With the 700 million reais from the seventh issue, Letras Financeiras are consolidated as the main form of funding for Banco CNH Industrial, excluding BNDES Moderfrota. Furthermore, this round had a significant allocation to longer maturities, which is quite healthy from a balance sheet and cash management perspective for the institution", informs Diogo Bizinelli, the Bank's Financial Director.

According to Alessandro Karpinski, Treasury manager, historically, agribusiness is the one that works most with lines subsidized by the Government. When there is a scarcity or absence of resources, banks seek to fill this gap with their own resources. “Banco CNH Industrial is one of the largest transferors of BNDES lines, but, with the growth in demand for financing not linked to BNDES, being capitalized to support this demand is essential”, he reinforces.

“The search for alternative resources strengthens the company’s competitiveness, allowing us to continue offering financial solutions for all CNH Industrial and Iveco Group brand products in the country, in addition to becoming increasingly more effective, maintaining the profitability of our operation”, he adds. Heberson de Góes, President of Banco CNH Industrial.

The financial institution has been operating for over 23 years in financing machinery and equipment in the agricultural and construction segments, as well as commercial vehicles and energy generators. In Brazil, the institution is present at points of sale of the CNH Industrial brands – Case IH, New Holland Agriculture, CASE Construction Equipment and New Holland Construction; and Iveco Group – IVECO, Iveco Bus and FPT Industrial.