Raiffeisen has sold its Belarusian business to a company from the United Arab Emirates.
About this reported in the bank’s press release.
Austrian banking group Raiffeisen Bank International (RBI) has signed an agreement with an investor from the United Arab Emirates to sell and divest the ownership of the Belarusian Priorbank.
According to the announcement, Raiffeisen Bank International will sell an 87.74% stake in the Belarusian bank Priorbank and its subsidiaries to Soven 1 Holding Limited.
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“The conclusion of this agreement will enable the RBI to successfully exit the Belarusian market and thereby reduce the complexity of its operations in line with its strategy of reducing risks in Eastern Europe,” the Austrian bank said.
The deal, which is subject to regulatory approval, is expected to close in the fourth quarter of 2024.
The RBI believes the transaction could result in losses for the group of around 300 million euros due to the difference between the sale price and the book value of Priorbank.
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Upon closing of the transaction, a negative impact of 500 million euros on the group’s consolidated profit is expected.
However, there will be no impact on the regulatory capital and capital adequacy ratios of the RBI group, it said.
Priorbank has been operating in Belarus since late 1989, and has been part of the RBI Group since 2003. It is one of the largest Belarusian banks in terms of assets.
