It looks like one of the world's largest banks is betting on Brazil to the tune of $7 billion.
Spain’s biggest bank Santander has announced an offering; about 16% of its Brazil unit to be traded on both the Sao Paolo exchange and the NYSE beginning October 7th.
The new shares are expected to be offered at 22.00 to 25.00 Brazilian reais each, the company said, with final pricing due on Oct. 6. That translates into as much as $7.3 billion.
"Brazil might soon be the new flagship of the Santander group, accounting for over a quarter of its value in 2011," says Evolution Securities bank analyst Arturo de Frias Marques.
The response by investors to the Brazilian share offering will not only show if Santander's early expansion in the country has paid off -- but if other banks will also benefit from Brazil's blossoming economy.
Find out what Tim Seymour has to say about the offering and how to trade Brazil. Watch the video now!