Banco do Brasil prepares $2 billion share offering: sources

Brazilian state lender Banco do Brasil SA (BBAS3.SA) is readying a secondary share offering that may raise up to 7.9 billion reais ($2 billion), three people familiar with the matter said.

One of the sources, who spoke on condition of anonymity because the transaction has not been announced, said the banks are planning to price the offering by the end of September.

The investment banking units of Itau Unibanco Holding SA (ITUB4.SA), XP Investmentos SA, Caixa Economica Federal, Credit Suisse Group AG (CSGN.S), JPMorgan Chase & Co (JPM.N) and Banco do Brasil have been hired to manage the deal, sources said.

State bank Caixa Economica Federal has said it is looking to sell a 2.4% stake in Banco do Brasil held by a workers severance fund, according to a Tuesday securities filing. The transaction could raise nearly 3.1 billion reais for the FI-FGTS fund, which Caixa manages, based on Monday’s closing share price.

Reporting by Carolina Mandl and Tatiana Bautzer; editing by Jonathan Oatis via Reuters

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