Portugal’s Banco Espírito Santo sells stake in Brazilian bank

29 April 2011

Lisbon, Portugal, 29 April – Portugal’s Banco Espírito Santo (BES) sold its 4.1 percent stake with voting rights in Brazilian bank Bradesco for 2 billion reals, the bank said in a statement filed Thursday with the Portuguese stock market regulator, CMVM.

With the cash from the sale to Cidade de Deus Companhia Comercial de Participações (Cidade de Deus), Bradesco’s holding company, BES plans to boost its solvency ratios, specifically Core Tier 1 that stood at 7.9 percent, following a recommendation by the Bank of Portugal that banks should end 2011 with a minimum ratio of 8 percent.

Bradesco is a BES shareholder and markets have called for sale of assets as a way of Portuguese retail bank boosting their capital without intervention from the public fund for bank capitalisation. (macauhub)