Banco do Estado do Rio Grande do Sul S A : Notice to the Market - Subordinated Notes Issuance

Banco do Estado do Rio Grande do Sul S.A. ('Banrisul'), hereby communicates to its stockholders and to the market that today it priced the offering of Tier 2 Subordinated Notes ('Notes') in the total amount of USD$300.000.000,00, at 5.375% p.y. The Notes have 10 (ten) years of maturity.

Banrisul will request approval of the Central Bank of Brazil for the Notes to be included in its Regulatory Capital as Tier 2 Capital, adding 3.70 bps(¹) to Banrisul's Tier 2 capital ratio.

The Notes were not and will not be registered under the 'U.S. Securities Act of 1933', as amended ('Securities Act'), and may not be offered or sold in the United States of America with the applicable registration or exemption from registration. The Notes were offered to qualified institutional investors only, as defined in Rule 144A of the Securities Act and to non-American persons, in accordance with Regulation S of the Securities Act. The Notes were not and will not be registered with the Brazilian Securities and Exchange Commission (CVM). The sale of the Notes shall not be made in any jurisdiction where such offer, request or sale is deemed to be considered illegal.

This notice to the market is exclusively informative, in accordance with the terms of the existing regulation, and should not be considered as an announcement of Notes offering, a request to buy Notes, and/or an investment recommendation.

(¹) Considering the exchange rate as of January 20, 2021 at 5.30.

Porto Alegre, January 21st, 2021.

Marcus Vinícius Feijó Staffen
Chief Financial and Investor Relations Officer

Investor Relations Department
Phone: [phone]
E-mail: [e-mail]
Website: www.banrisul.com

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