GE Capital has entered into an agreement to sell an 18.6 per cent stake in Turkiye Garanti Bankasi (Garanti Bank) to Spanish banking group Grupo Banco Bilbao Vizcaya Argentaria (BBVA). GE will receive $3.77bn and retain 2.25 per cent of Garanti shares.

With an initial $1.8bn investment in Garanti in 2005, GE Capital will realize $5.2bn in total proceeds from dividends and the sale of the Garanti holdings upon completion of this transaction.

GE Capital CEO for global banking Dmitri Stockton said, this sale is consistent with the strategy of reducing the size of financial services portfolio in a smart and timely manner and focusing on core businesses and markets.

"BBVA is a leading bank that will help Garanti to continue to grow, and we will retain a small investment for future value creation," Stockton said.

The transaction is subject to completion of BBVA's separate acquisition of additional Garanti Bank shares from the Dooup Group, and all necessary regulatory approvals.