Banco Patagonia SA said it has gained approval from the audit committee of Argentina's CNV securities commission for a foreign trade financing line to be granted by Banco do Brasil SA, the bank's majority owner.

The board of Banco Patagonia on May 30 approved the operation, which will constitute about 1% of the Argentine bank's total equity.

Banco do Brasil owns an estimated 80% stake in the Argentine bank, which it suggested it could divest earlier this year.