Banco Santander (NYSE:STD) is clearly headed in the right direction with the announced IPO of its Brazilian banking operations. The Spanish bank's ADRs are in the Latin Stock Investing Growth Portfolio. For more information check out www.latinstockinvesting.com

I just downloaded the 674 page prospectus for the deal. Here's a recent story from the Wall Street Journal that gives a view of what's going on.

MADRID -- Banco Santander SA's Brazil unit Thursday kicked off its initial public offering with a prospectus filed to the U.S. Securities and Exchange Commission, seeking fresh capital to expand in Latin America's biggest market.

The sale of a 15% stake in Brazil's third-largest bank not in government hands could fetch €2.3 billion ($3.28 billion), according to estimates from Lisbon-based brokerage BPI. Santander gave an indicative amount of €200 million in its prospectus, but analysts said the figure was a technical matter solely to satisfy filing regulations.

Santander is among a handful international banks to have emerged relatively unscathed from the global credit crunch that has roiled financial markets since August 2007. A leading player in Latin America and Spain, Santander also has a large European consumer lending business and a burgeoning franchise in the U.S.

The bank already has a strong presence in Brazil, commanding a 10.2% market share in terms of assets. In 2007, a consortium including Santander acquired Dutch bank ABN Amro. Under the deal, the Spanish bank took over Banco Real, ABN Amro's Brazilian operation, adding to its existing retail business.

Currently, Santander's Brazilian unit trails listed banks Itau Unibanco and Bradesco.

Santander, the largest bank in the euro zone by market value, said it sees Brazil as "one of the most attractive markets in the world given its growth potential and low penetration rate of banking products and services."

The lender said it plans to open 600 branches in Brazil by 2013, expanding its network by almost a third. Most branch openings will be located in Southern and Southeastern Brazil, the company said. Santander already operates a network of 2,091 branches and 1,521 on-site service units located at corporate customers' premises. The bank has 21 million customers in Brazil.

In the prospectus, Santander added that it plans to further grow its insurance business, particularly bancassurance -- the distribution of insurance products through bank branches.

Shares of Santander rose 2.8%, or 29 European cents, to €10.59.