Banco Brasil wants $5.7 bln US share sale -paper

SAO PAULO Oct 31 (Reuters) - Banco do Brasil (BBAS3.SA), Brazil's biggest bank, wants to fetch up to 10 billion reais ($5.7 billion) in a share offering in the United States to replenish its capital base, newspaper O Estado de S. Paulo reported on Saturday, citing unnamed sources.

Analysts have said trading of Brazilian company shares in the United States could see a short-term boost after Latin America's largest economy imposed a tax on capital inflows.

This month, the government began charging 2 percent on foreign inflows into the country's stock and fixed-income markets in order to curb a rapid strengthening of the local currency, the real BRBY.

Banco do Brasil, also Latin America's largest bank by assets, wants to sell American depositary receipts Level 1 and Level 2 in New York, which help it boost liquidity of its stock and raise additional funds to pay for recent acquisitions, expand credit and beef up capital, the sources told Estado.

A spokesman for Brasilia-based Banco do Brasil could not immediately be reached for comment.

(Reporting by Guillermo Parra-Bernal; Editing by Will Dunham)