By Joshua Kirby 
 

Banco Bilbao Vizcaya Argentaria SA said Monday that it is increasing its stake in the owner of Brazilian online bank Neon Pagamentos for a consideration of around $300 million.

The Spanish lender has reached an agreement with U.K.-based Neon Payments on the subscription of 492,692 preference shares, representing around 22% of the company's share capital, through a capital increase worth approximately $300 million. Neon Payments owns Neon Pagamentos outright, BBVA said.

The subscription will increase BBVA's stake in the company to just under 30%, from around 10% held indirectly currently, the bank said. The subscription and payment should go ahead this month, and will entail a consumption of around 10 basis points of BBVA's common equity Tier 1--a measure of a bank's capital strength--it said.

 

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

 

(END) Dow Jones Newswires

February 14, 2022 02:50 ET (07:50 GMT)

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