SAO PAULO, Aug 31 (Reuters) - Brazilian state bank Caixa Econômica Federal will use proceeds raised in a new joint venture with France’s CNP Assurances SA to boost its capital ratio, Chief Executive Officer Nelson Antonio de Souza told Reuters on Friday.
Caixa agreed on Wednesday to create a joint venture with CNP to sell life insurance products in the bank’s branches. CNP will pay 4.65 billion reais ($1.13 billion) for a 40 percent stake in the new company.
Souza said Caixa is exploring the sale of other assets, including lottery licensing unit Caixa Instantanea SA, part of its loan portfolio and real estate. After failing to sell Caixa Instantanea earlier this year, the bank intends to resume its sale effort by December.
The bank faced high delinquency rates after its aggressive loan book expansion under the country’s former Workers Party government.
Souza said that Caixa wants to grow its loan book in credit lines that require less capital, such as payroll-backed loans. ($1 = 4.1056 Brazilian reais) (Reporting by Aluisio Alves; writing by Carolina Mandl; Editing by Dan Grebler)