ITAÚ UNIBANCO - MATERIAL FACT - SETTLEMENT AGREEMENT WITH THE GOVERNMENT OF THE STATE OF PARANÁ

Rhea-AI Summary

Itaú Unibanco Holding S.A. announced a settlement agreement with the Government of the State of Paraná regarding a long-standing legal claim. The agreement, subject to ratification by the Brazilian Supreme Court, will see Itaú Unibanco receive R$1.7 billion for a debt that has been outstanding for over 20 years. This debt is secured by shares from Companhia Paranaense de Energia – COPEL. Payments will be made in three installments over two years, with options for accelerated payments tied to a potential public offering of COPEL shares. The last installment may be paid in advance if the offering occurs in 2023, enabling the settlement to conclude within a year of approval.

Positive

• Itaú Unibanco set to receive R$1.7 billion, bolstering its financial position.
• Settlement may facilitate further investment opportunities through COPEL's transformation.

Negative

• None.

SÃO PAULO, April 11, 2023 /PRNewswire/ -- Itaú Unibanco Holding S.A. informs its stockholders and the market that its controlled company Itaú Unibanco S.A. entered into a settlement agreement yesterday with the Government of the State of Paraná, in the context of a legal claim, which settlement agreement is subject to ratification  by the Brazilian Supreme Court, pursuant to which Itaú Unibanco S.A. will receive  R$1.7 billion regarding debt owed by the State of Paraná for more than 20 years, which debt is guaranteed by shares issued by Companhia Paranaense de Energia – COPEL ("COPEL").

The amount will be paid in 3 installments during the next 2 years, and upon such payments, Itaú Unibanco S.A. will remove the liens from the shares issued by COPEL and owned by the State of Paraná ("Shares"). Itaú Unibanco will also remove the liens from the Shares that will be necessary in the context of a potential public offering of shares relating to the transformation of COPEL into a corporation without a controlling shareholder ("Offer"). The last installment will be paid in advance in case the Offer takes place during 2023, in which case the total amount set forth in the agreement will have been paid within 12 months counting from its ratification.

RENATO LULIA JACOB 
Group Head of Investor Relations and Market Intelligence

Contact: 
(11) 5019-8880 / 8881
imprensa@itau-unibanco.com.br

View original content:https://www.prnewswire.com/news-releases/itau-unibanco---material-fact---settlement-agreement-with-the-government-of-the-state-of-parana-301794488.html

SOURCE Itaú Unibanco Holding S.A.

FAQ

What is the amount Itaú Unibanco will receive from the State of Paraná?

Itaú Unibanco will receive R$1.7 billion from the State of Paraná.

When will the payments from the State of Paraná be made to Itaú Unibanco?

The payments will be made in three installments over the next two years.

What is the significance of the settlement agreement for Itaú Unibanco?

The settlement agreement allows Itaú Unibanco to receive a significant amount, enhancing its liquidity and enabling potential further investments.

What conditions are linked to the settlement agreement?

The agreement is subject to ratification by the Brazilian Supreme Court, and the last installment could be paid early if COPEL's public offering occurs in 2023.