Banco do Brasil may issue stock in US by year-end

BRASILIA, Oct 28 (Reuters) - Banco do Brasil, Latin America's largest bank by assets, could issue shares in the United States by the end of the year, Chief Executive Aldemir Bendine said on Wednesday. Bendine told a press conference in Brasilia the bank would be prepared for such a move within weeks but would only tap the U.S. market at an opportune time. "We have an idea to maybe do it this year," Bendine said, adding that foreign demand for Brazilian assets in general was "extremely positive." Analysts have said trading of Brazilian company shares in the United States could see a short-term boost after Latin America's largest economy imposed a tax on capital inflows. Brazil's government recently began charging 2 percent on foreign inflows into the country's stock and fixed-income markets in order to curb a rapid strengthening of the local currency, the real. Banco do Brasil agreed on Tuesday to increase its stake in BrasilPrev Seguros e Previdencia, a private pension joint venture with Principal Financial Group, to nearly 75 percent from about 50 percent. An expansion in private pension plans would also help meet demand for longer-term funding in Brazil, as the economy continues to grow and mature, Bendine added. Bendine's comments come as the bank beefs up investment in the insurance market. Earlier this month the bank said it was seeking control of state-run reinsurer IRB-Brasil as the country is slated for massive infrastructure projects to extract oil from offshore reserves and build the venues for the 2014 Soccer World Cup and the 2016 Olympic Games. (Reporting by Ana Nicolaci da Costa) Keywords: BANCODOBRASIL/ ([e-mail]; Reuters Messaging: [e-mail]; [phone]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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