France based Crédit Agricole has inked an agreement to dispose of the entire share capital of its Greek banking unit Emporiki to Alpha Bank, subsequently sustaining losses of €2bn.

The deal has been backed by the French lender’s Board of Directors and is anticipated to close by 31 December 2012, pending regulatory approvals.

Under the terms of the deal, the bank will sell the share capital for one euro, while infusing €2.85bn to recapitalize the bank, in which it has already injected €2.3bn in July 2012.

Around €550m of the unit’s funding will be converted into capital, while €150m of convertible bonds issued by the acquirer will be subscribed by Credit.

The deal will help the seller bank to concentrate on its core business in the country, which is in line with its strategic plan.

Nomura and Crédit Agricole CIB have adviced the seller on the deal, while Clifford Chance and Koutalidis served as the legal advisor.

Emporiki was acquired by the French bank in 2006 as part of its overseas expansion strategy, but sustained losses of €5.7bn since 2008.