Business

Brazil's Caixa mulls U.S. IPO of its digital bank

Chief Executive Pedro Guimaraes estimates that Caixa will retain nearly 40 million people as clients, as the government plans to continue to use Caixa Tem to pay other social programs

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  • Last week, Economy Minister Paulo Guedes unveiled the government’s plans to list this subsidiary;
  • Caixa’s digital arm has roughly 70 million clients.

Brazil’s state-owned bank Caixa Economica Federal is planning an initial public offering of its the newly created ‘digital’ arm in the U.S. as soon as next year, Chief Executive Pedro Guimaraes said in an interview.

Last week, Economy Minister Paulo Guedes unveiled the government’s plans to list this subsidiary.

READ ALSO: Without mentioning Caixa, Guedes says that Brazil’s government plans IPO of “digital bank created for emergency aid

Known as Caixa Tem, Caixa’s digital arm has roughly 70 million clients, most of them added this year, as the government used the state-owned lender to pay emergency payments to Brazil’s poorest.

Guimaraes estimates that Caixa will retain nearly 40 million people as clients, as the government plans to continue to use Caixa Tem to pay other social programs.

READ ALSO: Brazil’s Bolsonaro announces trade facilitation agreements with U.S.

He added that the digital bank will soon offer services like fast payments, micro lending and insurance.

Caixa plans to sell a 15% stake in the bank, Guimaraes said.