Brazil’s Caixa plans to hold IPO for insurance unit by end of 2015

Rogerio Jelmayer – The Wall Street Jounal, 7/23/2015

Brazil’s state-owned lender Caixa Economica Federal plans to hold an initial public offering for its insurance subsidiary by the end of this year, as part of an effort to help the government improve its fiscal situation.

The bank is planning to sell as much as 25% of the unit in an operation that could generate up to 11.25 billion reais ($5 billion), said a person close to the plan, who declined to be named. A bank spokeswoman declined to comment for this report. Caixa is fully controlled by Brazil’s federal government.

Earlier this month, Caixa announced the creation of a holding company called Caixa Seguridade Participacoes, which will control certain insurance operations of the bank and be the subject of the IPO.

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