The Bank of Cyprus has completed its acquisition of performing loans worth approximately €130 million and deposits of around €440 million from the Cyprus Development Bank (CDB), following the receipt of all required regulatory approvals, the two banks announced on Wednesday.

The transaction, agreed in March, covers substantially all of CDB’s performing loans and deposits, together with certain other assets and liabilities, and was completed at a price close to their book value.

The consideration was nearly at par, with the total estimated discount on the assets transferred amounting to approximately €2.8 million, according to CDB.

Any balancing amount arising from the transaction was settled in cash, the banks stated.

Bank of Cyprus Holdings said the acquisition was expected to have a modest positive impact on the group’s income statement, while its effect on capital would be limited to approximately 30 basis points.

The group said the transaction had been executed on normal commercial terms and was aligned with its strategy of expanding its performing loans and deposit base over the medium term.

It added that the acquisition would strengthen its customer base and reaffirmed its strategic priority of pursuing both organic growth and acquisitions to deliver attractive and sustainable returns while creating value for shareholders.

For CDB, the transfer was described as an appropriate step that took into account the interests of its stakeholders, including depositors, creditors, bondholders and shareholders.

Arrangements have been implemented to ensure continuity in customer servicing, CDB said.

The Cyprus Development Bank further stated that it will continue to service and manage the assets and liabilities excluded from the transaction, including its Tier 2 subordinated bonds, in accordance with their existing terms and conditions.

Following completion, CDB’s activities will focus on managing and servicing its remaining assets and liabilities.

Both banks confirmed that the transaction did not relate to or affect the interests of their respective company secretaries or any designated persons under the relevant provisions of Cyprus’ securities and stock exchange legislation.

Bank of Cyprus Holdings said it had been advised on the transaction by KPMG Limited as financial adviser and Hadjianastassiou Ioannides LLC as legal and competition counsel.

On their part, CDB said it had received legal advice from Antis Triantafyllides & Sons LLC.