Bank of Cyprus (BoC) has reached an agreement to sell its loss-making Ukrainian business for €225 million, it was announced on Friday.
The sale of the operations to ABH Ukraine Limited, a member of Alfa Group, is subject to approvals from the relevant regulatory authorities in Cyprus and Ukraine, the lender said.
“The Group proceeded with what it considers to be a good transaction in order to deleverage and de-risk its balance sheet and to eliminate future potential risks relating to its Ukrainian investment, particularly given the political and economic environment prevailing currently in Ukraine,” BoC said.
Chairman Christis Hassapis said the move meant BoC’s “full exit from the Ukrainian market.”
The sale falls under the Group’s strategy of focusing on core businesses and markets and disposing operations that are considered as non-core and is being implemented at a faster pace than what is anticipated in the Restructuring Plan.
PSJC Bank of Cyprus was acquired by the Bank of Cyprus Group in 2008.
It operates a network of 42 branches, focusing both on individuals and businesses in Ukraine.
As at September 30, 2013, the bank had total assets and equity of around €245mn and €70 mn respectively