Brazil’s Caixa Economica Mulls Strategic Partners for Insurance, Asset, Card Units

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Brazil’s caixa economica federal is mulling strategic partnerships for its credit score card, asset control and coverage gadgets before taking them public, leader economic officer andre laloni stated on friday [March 29].

This strategy is part of caixa’s plan to raise up to one hundred billion reais from the sale of assets the unlisted country-owned lender owns or manages.
Caixa has already unveiled plans to elevate 15 billion reais thru preliminary public offerings of the three devices and some other one that manages brazil’s state lottery system.

Laloni stated the bank is considering partnering with a price card transaction processor in a new enterprise for caixa. Brazil’s largest card acquirers include cielo sa, redecard sa, getnet, pagseguro digital ltd and stoneco ltd.

Some companions may additionally need to pay to distribute merchandise through caixa’s branch network.

In august, caixa and france’s cnp assurances sa stated they would form a joint project to promote existence coverage merchandise inside the bank’s extra than 4,000 branches. Cnp agreed to pay four.Sixty five billion reais for a forty percent stake in the mission.

“such partnerships are probably to increase the units’ valuation earlier than an ipo,” laloni stated in an interview, adding that as many as gadgets may be indexed as soon as december.

Different deals that may assist caixa increase price range include the sale of its stakes in listed companies which includes petroleo brasileiro sa , securitization and actual property income.

In february, a central authority fund controlled by caixa sold its eight.9 percent stake in reinsurer irb brasil resseguros in a secondary share presenting. It become the primary divestiture led by means of caixa given that leader executive pedro guimaraes took the helm at the country bank in january.

Consequences
Caixa published a fourth-sector net lack of 1.113 billion reais ($287 million) after primary writedowns demanded with the aid of the brazilian imperative financial institution, guimaraes stated at a press convention in advance on friday.

A actual estate writedown of two.2 billion reais followed efforts by the country-owned bank to promote homes it ended up proudly owning whilst borrowers couldn’t pay off mortgages. It additionally published a loss of 1.1 billion reais from company loans to a few customers.

Guimaraes said the valuable financial institution demanded writedowns to reduce the value of actual estate repossessed via the financial institution.

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