Spanish banking institution BBVA has sold its business in Paraguay to Banco GNB Paraguay, from the financial group Gilinski, for €240m.
The sale's price could vary until the closing date of the operation, which is pending regulatory approvals and expected to be finalised by the end of the year, BBVA explained through a statement.
The company also said that it expects to generate around €20m in net capital gains, with a positive impact of about 5bp in the fully loaded CET1 capital ratio.
The acquisition will allow Banco GNB Paraguay to become the first bank in Paraguay in terms of deposits, with total assets amounting to €2.9bn and a 16.7% market share as of the end of the first half of the year.
BBVA Paraguay had total assets of €1.9bn as of the end of June 2019, with banking operations ranking fourth in the local market of the country (9.3% of loans and 11% of deposits).
"BBVA reiterates its commitment to Latin America and will continue to invest in the region, which is one of the Group's strategic areas of growth," concluded the firm in a note.