Brazil's Caixa hires banks to handle sale of IRB stake

By
Wednesday, February 6, 2019

Brazilian state-run bank Caixa Econômica Federal is concluding a process to hire banks to work as coordinators for the sale of its stake in local reinsurer IRB Brasil Re.

Caixa will be hiring Bradesco, Itaú Unibanco, Banco do Brasil and Bank of America Merrill Lynch to divest the stake during the first quarter, a person with knowledge of the sales process told BNamericas. The state bank itself will also be one of the coordinators, added the person, who declined to be named.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

Caixa owns 8.9% of IRB via Fundo de Garantia de Operações de Crédito Educativo (Fgeduc). The stake is worth around 2.4bn reais (US$655mn) considering IRB's current share price.

Pedro Guimarães, who became Caixa's CEO in January, has already announced plans to sell a series of non-core assets to boost Caixa's capital position.