Caixa Econômica Federal plans to sell 1.1 billion reais in real estate portfolios that served as collateral from borrowers who defaulted on their debts, Reuters reported.
The move is part of the Brazilian state-owned bank's efforts to strengthen its capital and expand its means of real estate financing.
Caixa will begin the first stage of the process next week, with an auction taking place in early August. A total of 6,000 properties will be sold to large investors, according to Marcelo Prata, the bank's vice president of logistics and operations.
The bank has a total portfolio of 46,000 properties, which it has collected in the last five years in the midst of Brazil's recession. The portfolio accounts for about 2% of the bank's active portfolio.
"For this year, with wholesale sales along with those we already do in retail, the goal is to raise revenues in this line to 3 billion reais," Prata said.
With the portfolio sale, Caixa aims to further bolster its capitalization amid new Basil III requirements that are set to take place in 2019.
As of June 5, US$1 was equivalent to 3.76 Brazilian reais.
