Cyprus: AstroBank Acquires USB Bank

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AstroBank has recently stated that it has signed an agreement to receive the operations of USB Bank, including its staff but excluding certain unspecified assets for an unspecified consideration.

The proposed agreement which will allow AstroBank to maximize its balance sheet by 55%, is anticipated to be finished before the end of the year.

According to sources, the transaction will be funded from own resources and also financed by a capital raise, mostly from AstroBank’s existing shareholders, which is said to be nearly completed.

Back in 2017, AstroBank was the result of the acquisition of the operations in Cyprus of Greece’s Bank of Piraeus by a group of investors from Lebanon, which was led by banker Maurice Sehnaoui.

And so, AstroBank strengthens its position on the market in Cyprus with this USB deal. Moreover, Sehnaoui is also a shareholder of Lebanon’s BLC Bank SAL which back in 2010, bought out USB Bank.

Following this, AstroBank’s total assets will increase to EUR €2bn, which is inclusive of gross loans of EUR €1.2bn, whereas its customer deposits and equity will increase to EUR €1.9bn and €160m respectively.