BBVA sells down Citic Bank stake

Spanish lender offloads a 5.1% stake in its Chinese counterpart for $1.27 billion, the latest western bank to cut back its China exposure in an effort to raise funds.
BBVA and Citic Bank have agreed to modify their strategic agreement to release the European bank from an exclusivity obligation.
BBVA and Citic Bank have agreed to modify their strategic agreement to release the European bank from an exclusivity obligation.

BBVA, Spain’s second-biggest bank, has sold a 5.1% stake in China Citic Bank for $1.27 billion in an effort to improve its balance sheet, marking another selldown of a Chinese bank by under-capitalised US and European lenders.

Citic, the parent and the controlling shareholder, has bought Citic Bank’s H shares. After the sale, Citic will increase its interest in the bank from 61.85% to 66.95%, while the Spanish bank will hold 9.9%, compared to 15% previously.

Shares of Citic Bank rose as much as 5.3% to HK$4.37 yesterday upon the news. Analysts said the news is positive and shows the parent company’s support by injecting...

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