Caixa's loan portfolio grew 43% through February.

By Aluisio Alves

SAO PAULO, March 25 (Reuters) - Caixa Econômica Federal further accelerated the growth of its loan portfolio at the beginning of 2013, and the expansion should be led by increased concessions for infrastructure, the bank's vice president of Finance told Reuters.

At the end of February, the state bank's loan portfolio had grown 43 percent in 12 months, a level higher than the 41,8 percent growth recorded in 2012.

"We are going to close the first quarter with very positive numbers, especially in credit," Márcio Percival told Reuters.

According to the executive, unlike in recent years, when the main focus of the concessions was housing loans—the bank's primary line of credit—and consumer financing, this time the plan is for infrastructure to take the lead.

Last year, Caixa and Banco do Brasil were the leaders in granting loans, especially for consumer financing, following the guidance of their controlling shareholder, the federal government, to expand lending in an attempt to accelerate the economy, while private rivals slowed down in anticipation of defaults.

According to Percival, Caixa's credit for infrastructure represents 10 percent of its commercial portfolio, and the intention is for that percentage to grow, although he did not mention by how much.

Of the 70 billion reais that Caixa intends to lend to this segment in 2013, approximately 45 billion reais are already in advanced stages of negotiation, said Percival. In 2012, Caixa lent 36 billion reais to this segment.

Last Friday, the executive met with business leaders from the Brazilian Association of Infrastructure and Basic Industries (Abdib) and said that the sector's demand for financing has increased, reflecting expectations of greater economic growth in the country this year.

INVESTMENT BANK

According to Percival, the release of funds from Caixa to the sector should gain momentum in the second half of the year, when he expects his investment bank to be operational. With it, Caixa intends to establish other financing structures, in addition to direct bank loans, such as project finance.

"We are awaiting authorization from the Central Bank, by July at the latest," said Percival.

Among the targets of the financing are the auctions for highway and railway concessions, scheduled to take place in the coming months.

According to the executive, having good growth figures in the first quarter will be a strong argument to present to investors in May, when Caixa intends to raise up to 2,5 billion dollars internationally.

"It will be a way to undo the bad feelings created by Moody's," said Percival.

Last week, the credit rating agency cut Caixa's long-term issuer rating to "Baa2," citing the erosion of its capital positions after years of rapid credit expansion. (By Aluisio Alves)