(Adds use of proceeds in second paragraph.)
Oct. 20 (Bloomberg) -- Brazil’s Caixa Economica Federal said it signed a contract to sell 1.5 billion reais ($834 million) of mortgage-backed certificates to the workers’ compensation fund it manages, known as FGTS.
Caixa will use the proceeds to generate new real-estate loans, the state-controlled bank said in an e-mailed statement.
FGTS may spend as much as 2.84 billion reais on buying so- called CRI certificates in 2011, according to the statement.
The fund also plans to buy 700 million reais of the securities from Banco Santander SA and 578 million reais from Itau Unibanco Holding SA, Sao Paulo-based Valor Economico reported today, citing Caixa’s vice-president of funds Fabio Ferreira Cleto.
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