This deal is part of BNP Paribas' adaptation plan to increase its common equity Tier 1 ratio by 100bp to reach 9% on a fully-loaded Basel 3 basis by 1 January 2013. The disposal of 28.7% of Klépierre's share capital will generate a capital gain of approximately €1.5bn for the Group and will contribute 32bp to this target.
This acquisition of the equity stake by Simon Property Group will bring together Klépierre's expertise and European presence with the strengths of the largest commercial real estate company in the US. BNP Paribas, which has supported Klépierre throughout its development, will own 22.2% of the capital after the deal, and plans to remain a significant shareholder in the company. Therefore, BNP Paribas has committed to keeping this entire stake for at least one year.
BNP Paribas and Simon Property Group are convinced that through this transaction, Klépierre will be backed by strong and experienced shareholders, allowing it to pursue its development in Europe.
About BNP Paribas
BNP Paribas (www.bnpparibas.com) has a presence in 80 countries with nearly 200,000 employees, including more than 150,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across Mediterranean basin countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia.
Rated AA- by Standard & Poor's, BNP Paribas is one of the best rated banks in the world.