BILBAO (dpa-AFX) - Spain-headquartered banking business BBVA on Monday said it has reached an agreement to invest $300 million (about 263 million euros) in Neon, a Brazilian digital bank founded in 2016. The new investment of 21.7 percent stake, along with the stake held by the group since 2018 through its venture capital fund Propel, would take BBVA's total stake to 29.7 percent of Neon.
Share subscription and payment are expected to take place in February. The transaction would have a capital consumption of about 10 bps in BBVA's fully-loaded CET1 capital ratio.
Neon has 15 million registered accounts and this investment would allow BBVA to gain exposure to retail banking in Brazil.
Neon's management team includes founder and CEO Pedro Conrade and executive managing partner Jean Sigrist, who would continue to lead the company.
Shares of BBVA closed Friday's trading at $6.58, down $0.33, or 4.78 percent from previous close.
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