COMPLETION OF SALE OF UK LOAN BOOK
Announcement
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Completion of sale of UK Loan Book |
Nicosia, 3 November 2014
Further to the announcement dated 18 September 2014, Bank of Cyprus Public Company Ltd (the “Bank”, the “Group” or the “Company”) announces the completion of the sale of the relevant UK loan portfolio owned by the Group and largely composed of residential and commercial real estate-backed facilities (the “Loan Portfolio”) to Mars Capital Finance Limited, which is a mortgage lender and administrator regulated by the Financial Conduct Authority of the UK, and to Camael Mortgages Limited (together the “Purchasers”).
As stated in the announcement dated 18 September 2014, this transaction will enhance the Group's liquidity and will have a small positive impact on the Group's Common Equity Tier 1 capital[1] due to the release of risk weighted assets.
The sale of the Loan Portfolio is in line with the Group's Restructuring Plan and is part of the Group's strategy of deleveraging through the disposal of non-core operations and of focusing on core businesses while, at the same time, strengthening its capital and liquidity position.
As required by the Cyprus Stock Exchange and according to paragraph 5.2.1.17(7) of Law 326/2009 (as amended), the transaction is at arm's length, it does not relate to or affect the interests of the Company's Secretary or of any “designated person” in accordance with the meaning given to the aforementioned term in article 137(3) of the Law.