UPDATE 1-Brazil's Caixa plans 2017 IPOs for insurance, card units - source

martes 6 de septiembre de 2016 13:45 GYT

(Recasts with details, background)

By Aluisio Alves

SAO PAULO, Sept 6 (Reuters) - Brazil's state lender Caixa Economica Federal is planning initial public offerings (IPOs) of its insurance and credit card units in 2017, a source with direct knowledge of the matter said on Tuesday.

The priority will be the listing of insurance unit Caixa Seguridade, the source said, after a delay last year due to market conditions. At the time, the state lender expects to raise up to 7.5 billion reais ($2.3 billion) with the deal.

The share sales would help to capitalize Caixa at a time when Brazil's tight federal budget has little room for further capital injections. Moody's Investors Service said in a recent report that Caixa may need up to 17.5 billion reais in fresh capital.

Before filing for the IPO with regulators, Caixa wants to conclude negotiations on a 20-year extension of an exclusivity contract with France's CNP Assurances SA to sell insurance in Caixa branches beyond 2021, the source said.

An alternative would be to divide the contract into different exclusivity agreements for each insurance product, according to the source.

Caixa is also looking to group its credit card activities into a new company, which would also be listed, said the source. A new company to manage the scratch-tickets business is also being created and Caixa may sell a majority stake in it, the source added.

($1 = 3.22 Brazilian reais) (Reporting by Aluisio Alves; Editing by Alistair Bell)