Cyprus-based RCB sells performing loans to Hellenic Bank

Hellenic Bank Pcl

22/03/2022 08:41

NICOSIA, March 22 (Reuters) - Cyprus's RCB Bank has entered
into an agreement with Hellenic Bank  HBNK.CY  for the sale of a
performing loan portfolio valued up to 556 million euros
($611.04 million), it said on Tuesday.
    RCB said it expected to receive a total of more than 500
million euros from the sale.
    Russia's sanctioned VTB bank previously held a stake in the
Cyprus-based lender. On Feb. 24, the day Russia launched its
invasion of Ukraine, the 46.29% stake was acquired by other
Cypriot shareholders of RCB who represent management.
    "The sale of the loan portfolio shall strengthen further the
capital and the liquidity buffers of RBC Bank Ltd and shall
create additional substantial buffers, thus allowing for
significant absorption capacity of any potential external
shocks," RCB said in a statement.
    The total capital adequacy ratio of RCB would increase to
over 27% from its present level of 21% and the bank's liquidity
would exceed the total amount of all liabilities, it said.
    RCB said the loans being sold, in two tranches, were
Cypriot, European and United Kingdom exposures. The sale of the
first tranche was expected to be complete by March 24, and the
second by May 31 2022, subject to regulatory approval.
    ($1 = 0.9099 euros)

 (Reporting By Michele Kambas; Editing by Kirsten Donovan)
 ((michele.kambas@thomsonreuters.com;))