BB Defines Jumbo Follow-on

Banco do Brasil’s board has authorized it to sell up to 286m shares through a primary offering in the Bovespa. Such an offer would raise BRL8.74bn at Wednesday’s closing price of BRL30.55. The offer is one of the most anticipated this year in Brazil, along with an expected follow-on from Petrobras, and equity investors are heard keeping powder dry for both. Additionally, the bank’s controlling shareholders plan to sell an undisclosed portion of shares via a secondary offer, with additional details to be released as the regulatory process progresses. No timetable is given for the primary operation, which still needs regulatory approval. Separately, Banco do Brasil has been authorized by the US Federal Reserve Board to operate as a retail bank in US.