Idea Bank SA signed an agreement to sell a 15% stake in unit Idea Getin Leasing to its main shareholder Leszek Czarnecki for 75 million Polish zlotys.
Payment for the transaction will be divided into three installments of 25 million zlotys settled at the time of signing the agreement, by May 15, 2019, and by May 15, 2020.
The transaction is expected to boost the bank's third-quarter pretax stand-alone profit by 73.7 million zlotys and the pretax consolidated profit by 16.8 million zlotys.
The sale is one of measures planned by the bank to bring its capital adequacy ratios to the level required for the lender by the Polish Financial Supervision Authority, Idea noted in its Aug. 31 filing.
The deal will boost the bank's stand-alone Tier 1 ratio by 47 basis points, aligning it with the regulatory requirements. In addition, the transaction will increase Idea's stand-alone total capital ratio by 47 basis points, and its consolidated Tier 1 and total capital ratios by 49 basis points and by 50 basis points, respectively.
The final impact of the sale on the capital ratios will be known after the audit of the lender's financial report for the first half of 2018.
As of Aug. 31, US$1 was equivalent to 3.70 Polish zlotys.