CPFL Renovaveis Said to Pick BofA, Itau for Brazil Initial Sale

CPFL Energias Renovaveis SA, a Brazilian renewable-energy joint venture, will hire Banco Itau BBA SA and Bank of America Corp. (BAC) to coordinate its initial public equity offering, two people familiar with the deal said.

Banco Bradesco BBI SA, Banco do Brasil SA (BBAS3) and Morgan Stanley (MS) will also participate, said the people, who asked not to be identified because the choices haven’t been made public. CPFL Renovaveis, a joint venture of Sao Paulo-based CPFL Energia SA (CPFE3) and ERSA-Energias Renovaveis SA, plans an IPO of as much as 1.5 billion reais ($820 million), the people said.

CPFL Renovaveis is the biggest producer of renewable energy in Brazil, according to Rafael Dias, an analyst with Brasilia- based Banco do Brasil SA. “Its intention is to consolidate this position,” Dias said in a telephone interview.

Brasil Energia, a fund managed by Banco BTG Pactual SA that invests in Brazilian energy companies, has a stake in CPFL Renovaveis. BTG Chief Executive Officer Andre Esteves said last month that the fund is divesting assets that will generate a “big profit” for the bank and other investors including pension funds and the country’s development bank, known as BNDES. The fund’s total assets are about 1.52 billion reais, according to data compiled by Bloomberg.

An official at CPFL Renovaveis declined to comment on the IPO. Representatives of the five banks also declined to comment.

To contact the reporters on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net;

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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