UBS and Banco do Brasil sign non-binding Memorandum of Understanding to launch a leading investment bank in South America

São Paolo and New York, 23 September 2019 – UBS AG ("UBS") and Banco do Brasil have entered a non-binding Memorandum of Understanding, with the intent of establishing a strategic partnership that would provide investment banking services and institutional securities brokerage in Brazil and in select countries in South America.

If a partnership agreement is executed, the intention of both UBS and Banco do Brasil is to jointly provide investment banking services in Brazil, Argentina, Chile, Paraguay, Peru and Uruguay through the partnership, which will have access to Banco do Brasil's corporate clients and UBS's global execution and distribution capabilities.

Both UBS and Banco do Brasil believe that the formation of a strategic, long-term partnership would create a leading investment bank platform in the region with global coverage by building on the complementary strengths of UBS and Banco do Brasil. The partnership is expected to provide its clients with comprehensive solutions and would provide additional benefits for its stakeholders.

It is envisaged that UBS would be the majority shareholder (50.01%) of the partnership, which would be established by the contribution of assets by both parties in accordance with the definitive terms and conditions of the partnership agreement, which is still under negotiation.

The effective implementation of the partnership is subject to the successful conclusion of the negotiations between the parties, on the execution of any binding transaction documents, as well as the relevant internal and external approvals.

Additional data deemed important will be disclosed immediately to the market.