It is to sell 188.4 million preferred shares in the financial institution, with Investimentos Itau, the parent company of Itau Unibanco purchasing an additional 56.5 million.
Jerry Dubrowski, a spokesman for BoFA, told Bloomberg that the firm sees its stock in the Brazilian company as a "non-core asset".
"With the acquisition of Merrill Lynch we have a significant presence in Latin America and Brazil and this doesn't change that," he said.
As a condition of BoFA's repayment of its Trouble Asset Relief Program (TARP) debts, it agreed to produce a net gain in its half-year results of $3 billion.
It paid back its TARP bailout funding last December, using $26.2 billion in excess assets and $18.8 billion made from a securities sale to raise the necessary $45 billion.
By Tony Aynsley