Reuters / BRASILIA May 5 The Brazilian Treasury has told Banco do Brasil SA subsidiary BB DTVM to redeem shares in the Investment and Stabilization Fund (FFIE), which will require selling the shares over 24 months, the bank said on Friday.
In a securities filing, state-controlled Banco do Brasil, Latin America’s largest bank, said the extended sales program would be carried out subject to market conditions.
The sole shareholder of the FFIE is the Brazil Sovereign Fund (FSB).
The Treasury instructed BB DTVM to “engage its best efforts to trade BB’s shares in the most neutral possible way in terms of asset price impact, in order to ensure liquidity in its portfolio,” the filing by the bank’s CFO Alberto Monteiro de Queiroz said.
Separately, the Finance Ministry said the recommendation was in line with its announcement in May last year that the sale of shares in the Brazil Sovereign Fund would go ahead over the next few years according to market conditions to get the best prices.
Banco do Brasil shares closed 2.32 percent higher on Friday, at 33.11 reais a share.
The FFIE fund groups controlling shareholders of the bank and has a 3.67 percent stake, or 105,024,600 shares. (Reporting by Paula Arend Laier and Anthony Boadle; editing by Grant McCool)
GLOBALES: Brazil Treasury tells Banco do Brasil to sell sovereign fund shares
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