Sale of BNDES Portfolio Investments to Start with Vale and Petrobras Shares

RIO DE JANEIRO, BRAZIL – The BNDES (National Bank for Economic and Social Development) will start selling the Vale and Petrobras’ shares held in its portfolio, according to sources close to the institution. The list of share holdings the bank wishes to monetize also includes Suzano, Klabin, and perhaps JBS. But the first to be sold will be the giant mining company and the state-owned oil company. The market has already been notified, given the many surveys conducted.

Sales by BNDES are expected to begin today, August 4th, carried out directly on the stock exchange, where BNDES holds a block of shares representing six percent of the company’s capital, estimated at R$19 billion. In July, the mining company’s share value on the B3 exchange reached its record high this year, over R$320 billion .

When questioned, the bank did not comment on the report.

Vale and Petrobras are the development bank’s largest stock holdings. Together, they accounted for nearly 47 percent of the BNDESPar portfolio in late March, when the overall portfolio was worth R$61.4 billion. On June 1st the bank was probing the market to restart the sales of its shareholdings.

With the marked post-pandemic stock market rebound, Petrobras shares held by BNDES – eight percent of the oil company’s capital – is worth almost R$23 billion. In February, the bank made an offer to sell the common shares it held in the state-owned company and raised R$22 billion, with the stock trading at R$30. The value of stock in the market rebounded, in relation to the worst scenario in March, but not at the same rate, impacted by the international oil price. Both common and preferred shares now stand at around R$22.

Selling JBS shares, which was once a priority, could be deferred. BNDES is still assessing the consequences on the company of the discussion on deforestation. Expectations regarding the sale of the shares have excited the market and there have already been repeated rumors on the forthcoming operations, mainly with Vale and paper products giand Klabin.

Source: Exame

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