Brazil Capital Markets Roundup: Banco do Brasil, Inter, Casas Bahia and Axia

Brazil · Business

Brazil capital markets are presenting a starkly divided landscape in early 2026, where state-backed income plays and a privatised utility’s governance overhaul contrast sharply with a digital lender in wait-and-see mode and a legacy retailer fighting for survival.

Banco do Brasil Leans on Tax-Efficient Payouts

Banco do Brasil is reinforcing its reputation as a primary income vehicle on the B3 exchange, using the country’s still-elevated Selic rate to channel generous interest on own capital (JCP) distributions to shareholders. On 10 February 2026, the bank’s board approved an additional R$1.23 billion ($217 million) in JCP related to the fourth quarter of 2025, translating to roughly R$0.22 per share before tax.

This payment, made on 5 March 2026, followed an earlier advance of R$261.6 million and was quickly succeeded by a further R$400.4 million advance JCP for the first quarter of 2026, paid on 11 March. The bank explicitly links these updates to the Selic rate, making the stock a direct beneficiary of Brazil’s restrictive monetary policy.

The distributions are supported by a solid capital base, with a Common Equity Tier 1 ratio of 11.59% and adjusted net income of R$3.4 billion in the first quarter. However, management has revised its guidance for cost of credit and net interest income, citing persistent risks in the agribusiness portfolio and broader macro uncertainty that investors must weigh against the attractive yield.

Inter’s Quiet Phase After International Listing

Digital lender Inter remains a benchmark fintech name for equity investors tracking Brazil’s modernising financial sector, yet the company is conspicuously quiet in the capital markets so far this year. A thorough review of public filings reveals no new 2026 transactions, such as a follow-on share sale, a major debt issuance, or a buyback announcement.

The bank is therefore best understood as being in a consolidation and execution phase, digesting its previous strategic moves including the migration to a Nasdaq-listed holding structure and the maintenance of its Brazilian Depositary Receipts programme. For the moment, Inter’s capital markets story is one of steady operational delivery rather than fresh deal flow, leaving growth-oriented investors to monitor its next strategic signal.

Casas Bahia Fights for a Restructuring Lifeline

At the distressed end of the Brazil capital markets spectrum, Grupo Casas Bahia is navigating a high-stakes debt restructuring that has become a litmus test for retail turnaround bets. The company secured a critical victory when holders of its real estate receivables certificates voted not to declare early maturity, and it subsequently gained full support from all creditors for its restructuring plan.

This backing keeps the retailer out of formal insolvency proceedings, but the underlying numbers reveal a deeply fragile operation. The company reported a modest net profit of R$37 million in one quarter, only to post a staggering R$836 million net loss in the following period, while its share price has oscillated violently within a 52-week range of R$2.60 to R$11.21.

With a market capitalisation that has been quoted as low as R$270 million against trailing revenue of over R$28 billion, the equity is priced for distress. The avoided acceleration of debt maturities provides a window for operational repair, but the stock remains a high-risk proposition driven by restructuring headlines rather than fundamental recovery.

Axia Energia Completes a Governance Transformation

Axia Energia, the privatised successor to Eletrobras, has executed one of the most significant capital markets repositionings in recent Brazilian history. The company completed its migration to B3’s Novo Mercado segment on 8 June 2026, adopting a “one share, one vote” standard that simplifies a historically complex share structure and commits the firm to the highest tier of corporate governance.

The migration was preceded by a major capital reorganisation approved in December 2025, which included a R$30 billion capitalisation from profit reserves and the issuance of over 606 million new preferred shares as a bonus issue. This non-cash move, combined with the mandatory conversion of existing preferred shares into common stock, was designed to increase trading liquidity and align the company with international investor expectations.

Alongside the governance overhaul, Axia is recycling capital aggressively. It sold a 49% minority stake in four transmission special-purpose entities to a subsidiary of Grupo Energía Bogotá for R$451.5 million and concluded the sale of its entire stake in IE Madeira while acquiring full control of IE Garanhuns, receiving R$1.17 billion in the process.

Dividends and Auctions Define Axia’s Growth Cycle

Axia’s capital markets appeal is reinforced by a record dividend distribution of R$8.3 billion for 2025, a sum that represented 127% of its adjusted net income and was financed partly by accumulated balance-sheet reserves. This payout occurred even as consolidated EBITDA fell sharply, signalling management’s confidence in the company’s post-restructuring financial health.

The company is now pivoting decisively towards growth, with 286 transmission projects expected to add roughly R$2 billion in annual permitted revenue between 2026 and 2030. Axia and its subsidiary also secured 190 MW of capacity in Brazil’s 2026 reserve-capacity auction and won multiple lots in the country’s Transmission Auction No. 01/2026, committing billions of reais to new regulated infrastructure.

For international investors, Axia represents a rare combination of a freshly privatised national champion, a Novo Mercado governance badge, and a visible pipeline of inflation-linked transmission revenues. The simultaneous delisting of its Level 2 ADRs on the New York Stock Exchange concentrates liquidity on the B3, making it a purer play on Brazil’s domestic capital market deepening.

Frequently Asked Questions

What is driving Banco do Brasil’s shareholder payouts in 2026?

Banco do Brasil is distributing large interest on own capital payments because Brazil’s Selic benchmark rate remains in the mid-teens, making the tax-deductible JCP mechanism highly attractive. The bank approved R$1.23 billion for the fourth quarter of 2025 and a further R$400 million advance for the first quarter of 2026, supported by a solid Common Equity Tier 1 ratio of 11.59%.

Is Casas Bahia at risk of filing for bankruptcy?

Casas Bahia has avoided a formal insolvency filing by securing full creditor support for its debt restructuring plan and by convincing real estate receivables certificate holders not to declare early maturity. However, the company remains in a fragile state, reporting a net loss of R$836 million in one recent quarter, and its equity is trading near all-time lows.

What does Axia Energia’s Novo Mercado migration mean for investors?

Axia’s migration to B3’s Novo Mercado segment, completed on 8 June 2026, means the company now adheres to the highest corporate governance standards in Brazil, including a “one share, one vote” structure. This simplifies the capital structure, aims to increase trading liquidity, and makes the stock more accessible to institutional investors who mandate strict governance criteria.

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