December 27, 2019 / 9:55 PM / 25 days ago

Brazil's Itau more than quadruples stake in education lender Pravaler to 37.9%

By Aluisio Alves

SAO PAULO, Dec 27 (Reuters) - Brazil’s largest private lender Itau Unibanco Holding SA said in a securities filing on Friday that it raised its stake in student loan provider Pravaler to 37.9% of voting shares from 9%.

Pravaler’s Chief Executive Carlos Furlan told Reuters that the investment values the firm at 1 billion reais ($246.82 million).

Furlan said Itau had bought the additional stake in Pravaler from private equity firm Victoria Capital Partners and the International Finance Corporation, the investment arm of the World Bank.

Itau did not disclose the value of the investment in Pravaler, although the roughly 29% additional stake it bought would be worth 290 million reais based on the 1 billion reais value for the entire company.

Pravaler specializes in loans for students at private universities in Brazil and has lent 3 billion reais to 150,000 people, according to the company, with growth picking up as the country’s cash-strapped government has cut back its state student loan program.

“Our goal is to reach 10 billion reais in loans and 1 million students served by 2025,” Furlan said. ($1 = 4.0515 reais) (Reporting by Aluisio Alves Writing by Jake Spring; Editing by Cynthia Osterman)

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