Banco Santander has appointed advisers to spin off its Brazilian business in an initial public offering that could raise at least $3bn (£2.6bn) and create one of the largest publicly listed banks in Latin America’s biggest economy.

Alfredo Sáenz, chief executive of the bank, on Wednesday confirmed the move, saying that it planned to place new shares equivalent to 15 per cent of Banco Santander Brazil on the Brazilian stock exchange. According to sources close to the bank, the deal is likely to go ahead within the next three months.