Bank of Cyprus said on Friday that it has signed a binding agreement to sell its subsidiary bank in Australia Bank of Cyprus Australia Ltd (BOCA) to Bendigo and Adelaide Bank Limited for some €100m.
The sale is subject to the approval of the supervisory authorities of Australia and Cyprus. The deal is expected to have a positive impact of some €250m in available liquidity for the group, it added. The agreement will also have a positive impact on its capital adequacy ratio of €77m on its capital buffer. The sale, expected to be completed towards the end of February, will leave a profit of €8m.
The group said the decision was In line with its strategy to boost liquidity and capital. It will continue to focus on its main markets and in countries with large populations and low banking penetration.
Founded in 2000, BOCA operates 14 branches serving primarily individuals and companies of the Cypriot and Greek community of Australia.
Bendigo and Adelaide Bank is one of Australia’s largest regional banks with 1.4 million clients and total assets of €38b. It has a network of 600 branches, focusing particularly on community banking.

Cyprus Weekly