Bank of Cyprus completes €570m loan and deposit purchase from Cyprus Development Bank

The Bank of Cyprus has completed its acquisition of about €130 million in performing loans and roughly €440 million in deposits from the Cyprus Development Bank (CDB), after receiving all required regulatory approvals, the two banks announced on Wednesday. The transaction, agreed in March, covers substantially all of CDB's performing loans and deposits together with certain other assets and liabilities, and was completed at a price close to book value. CDB put the total estimated discount on the transferred assets at approximately €2.8 million, with the consideration nearly at par and any balancing amount settled in cash. Bank of Cyprus Holdings said the effect on its capital would be limited to about 30 basis points and that the deal supports its strategy of expanding its performing loan and deposit base.