Novo Banco SA agreed to sell a 90% stake in Banco Internacional de Cabo Verde SA to IIBG Holdings BSC.

The Portuguese lender signed a sale and purchase agreement with the Bahrain-incorporated company, with the completion of the deal subject to approval from relevant authorities, including the Banco de Cabo Verde.

The sale reflects Novo Banco's strategy to divest noncore assets while focusing on its core domestic banking activity. The Banco de Portugal previously opposed a sale of the Cape Verdean unit.

Novo Banco added that the completion of the transaction will result in neutral impact on its common equity Tier 1 ratio.