Spain’s BBVA has signed an agreement to sell a 4.9% stake in China CITIC Bank to Chinese real estate developer Xinhu Zhongbao for HK$13.13bn (nearly 1.46bn).
The stake sale will reportedly dilute BBVA’s stake in China Citic Bank to 4.7%.
BBVA said that the stake sale will deliver net capital gains of almost 400m and will enhance the common equity Tier 1 fully loaded capital ratio of the BBVA Group by over 20 basis points.
The Spanish lender said that the China Citic stake would be first sold to UBS, following which UBS’s London branch will transfer the stake to Xinhu Zhongbao.
The transaction is scheduled to be closed in the first quarter of 2015.