Bank of Cyprus Holdings PLC said Tuesday it had agreed to sell a portfolio of non-performing loans, which is expected to have a positive effect on its capital ratios.

Bank of Cyprus explained the sales of the Project Helix loans would reduce its non-performing loan exposure by EUR2.7 billion and improve its non-performing exposure ratio to 36% from 47% prior.

The firm anticipates the sale to have a “positive” impact on its capital ratios of around 160 basis points. At the end of 2018, its CET1 ratio stood at 15.4% and total capital ratio at 18.3%.

The sale is expected to complete in the second quarter of 2019.

Shares in Bank of Cyprus closed unchanged at EUR1.35 on Tuesday.