SAO PAULO, Aug 14 (Reuters) - Brazilian bank Bradesco

wants to form new partnerships with banks, equipment

producers and agriculture cooperatives to expand lending to the

agribusiness sector, which currently covers less than 15% of its

total credit portfolio.

Last Friday, Bradesco - one of Brazil's largest private

lenders - announced it was acquiring a 50% stake in Banco John

Deere Brasil, an arm of Deere & Co ( DE ), through a capital

increase.

The deal, which is pending regulatory approvals, did not

imply exclusivity, according to Bradesco's agribusiness

director, and may be followed by other agreements, both with

local and international businesses.

"This is a very relevant sector and we will continue to look

for other transactions," Roberto França told Reuters.

The partnership with John Deere ( DE ), and others that may come,

will help Bradesco expand its footprint in agribusiness by

increasing loans as well as the sale of other services,

including insurance products, to the enlarged customer base,

according to the executive.

Currently, Bradesco's total lending to the agribusiness

sector is about 120 billion reais ($22 billion), or 13% of the

bank's credit portfolio of about 912 billion reais.

While the bank has not set specific targets, França sees

room for a substantial increase in lending, considering that

agribusiness makes up for close to one third of Brazil's gross

domestic product.

Bradesco said last Friday that the investment in John Deere ( DE )

would not negatively impact its capitalization ratio.

The bank, however, did not disclose the transaction value.

According to França, both institutions have agreed not to

reveal financial specifics before the completion of all

regulatory approvals, which will likely take several months.

Pedro Paulo Silveira, a partner at advisory firm A3S

Investimentos, said that buying or sharing assets can be a good

alternative for banks like Bradesco to speed growth, considering

how competitive the financial sector has become.

Earlier this month, Bradesco reported higher than expected

second-quarter net profit on lower loan-loss provisions and

stronger margins, following a series of weak earnings amid

rising delinquency.

($1 = 5.4406 reais)