Allied Irish Banks (AIB) has signed an agreement to sell its 49.99% shareholding in Bulgarian-American Credit Bank (BACB) to CSIF AD for an undisclosed amount.
In mid-2008, the Irish bank acquired the stake in the Bulgarian SME lender for EUR216m, but recently value of its shareholding fell by EUR181m to just EUR35m.
BACB has significant exposure to the Bulgarian property market, with over 90% of the loan portfolio secured on real estate.
Completion of the transaction is conditional upon CSIF obtaining Bulgarian regulatory approvals and the transaction will have no material impact on AIB’s capital position.
As at 31 December 2010, BACB reported consolidated total assets of EUR375.9m and shareholders’ equity of EUR96.6m.
