Novo Banco SA formally kicked off the process to sell life insurance unit GNB - Companhia de Seguros de Vida SA, a spokesman for the Portuguese bank told Reuters.

GNB has more than €5 billion in assets, the newswire said in its Aug. 1 report. Consultancy firm Deloitte is advising Novo Banco on the sale process.

Portuguese authorities are in the final phase of selling a 75% stake in Novo Banco to Lone Star Funds in return for a €1 billion capital injection into the lender.