RBI is working on the sale of Belarus subsidiary Priorbank

Raiffeisen Bank International (RBI) wants to separate from its Belarusian subsidiary Priorbank and is in the process of doing so “advanced negotiations” with the Emirati Soven 1 Holding Limited. The bank announced this in a press release on Wednesday. The sale would mean RBI’s exit from the Belarusian market. This would also result in a loss of EUR 225 million at group level.

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This results from the difference between the book value of the equity and the expected purchase price. In addition, the conclusion of the transaction would have a negative effect of around EUR 450 million on the RBI Group’s income statement, according to RBI. This is justified by: “Reclassification of predominantly historical currency losses”, which are recorded in other comprehensive income until closing. However, the expected effect on the common equity Tier 1 capital ratio, which is important for banks, would be “minimal”the RBI reassured in the broadcast.

According to the information, the completion of the transaction is tied, among other things, to proof of financing by the investor, including the provision of all security for the purchase price. The potential purchase price if the deal is concluded was not disclosed. RBI holds 87.74 percent of Priorbank JSC.

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