NatWest Group PLC (LSE:NWG) has raised €126 million by selling its stake in Permanent TSB Group, an Irish retail and small business lender, in a placing with institutional investors.
The 11.7% stake was disposed of at a placing price of €1.98 per share.
NatWest said the disposal will have "an immaterial impact" on its CET1 capital ratio and its tangible net asset value per share.
Under a shareholder co-operation agreement, the Minister for Finance of Ireland has agreed not to sell shares in PTSB for 90 calendar days following the placing.
PTSB, formerly Irish Life and Permanent, is not related to the UK's TSB Bank, which Santander agreed to buy earlier this month for up to £2.9 billion.