Brazil’s Development Bank Pushes Its Great Downsizing and Rakes in US$5.2 Billion

The share sale is the biggest in Brazil since Petrobras’s record-breaking US$70 billion offering a decade ago in 2010, when it was a booming oil powerhouse with ambitions to more than double output.

RIO DE JANEIRO, BRAZIL - (Bloomberg) The Brazilian state development bank (BNDES) unloaded its voting stake in oil giant Petroleo Brasileiro SA, raking in R$22 (US$5.2) billion as part of a wave of asset sales aimed at reversing years of growing government influence in Latin America’s biggest economy.

BNDES, as the bank is known, sold all 734 million common shares, including over-allotments, for R$30 apiece, according to a regulatory filing. That represented a slight discount to Wednesday’s close, January 5th, signaling demand held up well in the face of sinking crude prices. Petrobras shares . . .

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