Raiffeisen Bank International AG (RBI) has reached an agreement on the disposal of 100 per cent of the shares of its Bulgarian subsidiary, Raiffeisenbank (Bulgaria) EAD, to KBC Bank, a fully owned subsidiary of Belgium-based KBC Group NV.

The transaction is subject to a successful closing and regulatory approvals.

The total transaction consideration for Raiffeisenbank (Bulgaria) EAD is EUR 1,015 million, which is expected to add approx. 90 basis points to RBI's CET1 ratio and will enable RBI to allocate additional capital to key markets and accelerate growth there. The final CET1 ratio impact will depend on RBI and Raiffeisenbank (Bulgaria) EAD balance sheets at closing, which is expected by mid-2022.

Despite consistent profitability and the strength of RBI's business in Bulgaria, the decision to sell is primarily motivated by the possibility to reallocate capital in order to seize attractive growth opportunities and gain scale in RBI's key markets.

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Raiffeisen Bank International AG published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 07:09:04 UTC.