Raiffeisen sells Slovenian unit to Apollo Global’s Biser Bidco: Reuters

Austria’s Raiffeisen Bank International (RBI) said on Thursday it had agreed to sell its Slovenian unit for an undisclosed sum to Biser Bidco, run by an affiliate of U.S. investment fund Apollo Global Management.

The move comes as part of RBI restructuring plans that also aim to sell its Polish unit and cut back in Russia.

Apollo also bought 80 percent of Slovenia’s second largest bank Nova KBM (NKBM) in June. The European Bank for Reconstruction and Development bought the other 20 percent.

Raiffeisen will book a negative effect of 49 million euros ($53.74 million) through the deal, which is due to be closed in the first half of 2016 pending regulatory approval.

This sum is already included in its outlook, Raiffeisen said on Monday.

The deal, which will reduce RBI’s risk-weighted assets by around 270 million euros, will have a “minimal negative effect” on RBI’s fully loaded Core Equity Tier 1 (CET 1) ratio, it said.

RBI targets to raise its CET 1 ratio to 12 percent by the end of 2017. At the end of the third quarter it stood at 10.8 percent.