Crédit Agricole S.A. Sells Banque Saudi Fransi Stake to Kingdom Holding

Crédit Agricole S.A. announced it has signed a binding agreement to sell a 16.2% equity stake in Banque Saudi Fransi (BSF) to Kingdom Holding Company (KHC), a Saudi diversified holding company. The transaction's total consideration is approximately SAR 5.8 billion (around €1.3 billion).

Following the sale, Crédit Agricole Corporate & Investment Bank (CACIB), a subsidiary of Crédit Agricole, will reduce its shareholding in BSF to 14.9%. The deal is subject to regulatory approvals and is expected to be completed in the second half of 2017.

Crédit Agricole has been active in Saudi Arabia since 1949 and associated with BSF since its establishment in 1977. The bank stated the divestment aligns with its strategy to reduce the weight of its non-controlling stakes. Crédit Agricole affirmed it remains committed to BSF as a shareholder and strategic partner.

The sale is anticipated to positively impact Crédit Agricole S.A.'s fully-loaded CET1 ratio by approximately 20 basis points, and the Crédit Agricole Group's ratio by about 5 basis points. CACIB indicated it may consider disposing of an additional stake of up to 5% in BSF on similarly favorable terms.