Brazil unit of China Three Gorges to file for $1 billion IPO, sources say

SAO PAULO (Reuters) - The Brazilian unit of power company China Three Gorges Corp is expected to file this month for an initial public offering, aiming to raise $1 billion, three people with knowledge of the matter said on Friday.

CTG Brasil hired the investment banking units of Citigroup, Bank of America, Itau Unibanco Holding, Banco Bradesco SA and Banco BTG Pactual, the sources added, requesting anonymity to disclose private discussions. Citi will lead the syndicate, two of the sources said.

The company is expected to issue around $1 billion in new shares and receive all proceeds, the sources added.

There is a chance of CTG pricing the offering in December, making its IPO the only one on Brazilian exchange B3 in 2022. An offering early next year is more likely, the three sources said.

Citigroup and Bradesco declined to comment. CTG Brasil, Itau, Bank of America and BTG Pactual did not immediately comment. The website of Brazilian newspaper Valor Economico reported the banks hired earlier on Friday.

(Reporting by Tatiana Bautzer; Editing by Brad Haynes and Chizu Nomiyama)

By Tatiana Bautzer