Banco Pine, with extensive experience in corporate credit, is diversifying its business with the creation of the Pine Capital Markets vertical. This division, dedicated to the origination, structuring, and distribution of debt transactions, seeks to strengthen its offering of funding solutions to its client base and capture a larger share of the growth in private credit in Brazil.
The new operation is focused on structured credit, receivables securitization, and loan syndication. In practice, the platform will work with instruments such as debentures, Real Estate Receivables Certificates (CRIs), Agribusiness Receivables Certificates (CRAs), Credit Rights Investment Funds (FIDCs), commercial notes, and syndicated operations. According to the model developed by the bank, the idea is to bring together origination, structuring, and distribution in a single mechanism.
The move also marks the arrival of Guilherme Gatto at Pine, who leads the new area as a partner, and is joined by Rafael Amaral and Bruno Brostoline in the operation set up under the partnership model.
“My work here is much more a continuation of the bank's strategies to diversify revenue sources and offer more funding products and solutions to our clients,” said Guilherme Gatto, head of DCM at Pine Mercado de Capitais, in an interview with NeoFeed .
With over 25 years of experience in credit and a historical focus on wholesale banking, Pine aims to leverage this foundation as a starting point for growth in this new area. The bank has a corporate credit portfolio of approximately R$7 billion, relationships with roughly a thousand economic groups, and a network of nearly 40 relationship professionals serving companies with credit, treasury, foreign exchange, derivatives, and financial investment products.
Now, the proposal is to complete this menu with instruments that are off the bank's balance sheet, targeting medium and large companies, generating cross-selling between operations. The initial pipeline for the new area is already being formed.
According to Gatto, there are operations in the structuring phase in the agribusiness, energy , services, transportation, and logistics sectors. The expectation is to bring these businesses to market in the coming months.
The bank's goal is to generate between R$2 billion and R$5 billion in offerings within two to four years.
Pine's bet is that there is room to differentiate itself in a market that has become more crowded, including with the entry of investment advisory firms, boutiques, and mid-sized banks into the debt capital markets (DCM) business. Instead of competing on pure scale with the big banks, the strategy is to sell customization.
“We will focus on delivering solutions that are off the radar for our clients. These are operations that we like to call tailor-made,” said Gatto.
This logic involves choosing, on a case-by-case basis, the most efficient instrument for each company. In many of the operations, Pine itself will act as an anchor with investors, participating in the allocation.
Today, in the bank's view, one vehicle stands out more prominently in this showcase: the FIDC (Investment Fund in Credit Rights).
The advancement of this instrument is due to companies seeking alternatives to securitize receivables and extend deadlines related to regulatory maturity, such as Resolution 175 of the Securities and Exchange Commission (CVM), which brought more transparency.
The rationale behind this prediction is that the Brazilian private credit market continues to expand, even with interest rate fluctuations and regulatory changes, such as the restriction on collateral for CRIs and CRAs.
According to Gatto, there are three pillars to support this vision: the growth in the volume of public offerings of fixed income, the expansion of the assets of funds with credit mandates, and the advancement of the secondary market.
He stated that the stock of funds focused on private credit has grown from somewhere between R$700 billion and R$800 billion five or six years ago to around R$2.5 trillion today. He also highlighted the diversification of mandates, with room for high-grade strategies, special situations, agriculture, and real estate.
Along the same lines, he said that the secondary market went from monthly trading volumes in the range of R$ 5 billion to R$ 10 billion to a volume of R$ 40 billion to R$ 50 billion per month.
"When you look at the number of public offerings being issued year after year, increasing, the fundraising of funds growing tremendously, fixed income and the secondary market being much more active, yes, we have complete confidence that this market will only grow," he stated.
This expansion is also opening up space for issuers less accustomed to the market. Gatto says that Pine's focus is not necessarily on making the debut of new companies in market fundraising the central axis of the operation. But he admits that, within the pipeline under analysis, there are companies that have never accessed certain instruments and that may start using these solutions for the first time.
"Perhaps what we have more of is not the first capital market issuance, but perhaps the first capital market issuance of some instrument that the company has not yet done," he says.
