The move, which forms part of the French lender’s plan to exit overseas markets and focus on domestic market, was executed through private placement to institutional investors using an accelerated book-building process.
The bank is curtailing its global operations, following losses sustained by its investment banking division during the financial crisis of 2008 as well as by the eurozone debt crisis.
By selling the entire shareholding at a price of €3.39 per share, the bank booked a net capital gain of €106m.
Post transaction, Crédit Agricole will not own any Bankinter shares and it has agreed with the banks in charge of the placement not to divest or otherwise transfer the convertible bonds or the underlying shares for a period of 90 days after completion of the sale.
However, the French bank will hold of 1.1 million convertible Bankinter bonds, which could be converted into up to 17.7 million shares of the Spanish bank.
In 2007, Credit Agricole acquired 19.53% of Bankinter, including 4.54% in the open market and 14.99% from a group of investors for €809m.
Crédit Agricole Corporate and Investment Bank served as sole global coordinator and joint bookrunner, while UBS acted as joint bookrunner, to manage the placement process.
With a network of 11,300 branch offices and 1,50,000 employees, Crédit Agricole serves nearly 51 million customers, 6.9 million mutual shareholders and 1.2 million shareholders.
