Italian banking group UniCredit has finalised the sale of €17.7bn worth of non-performing loans to Pimco and Fortress.

The move, announced in December 2017, is part of the lender’s strategic review that aims to shore up its balance sheet.

UniCredit, which raised €13bn in a rights issue earlier this year, also said that it would issue asset-backed securities (ABS).

“The transaction will complete further to the issuance of ABS notes which is expected to occur by the end of July 2017,” the bank said in a statement.

The bank said that the sale would boost its CET1 ratio by nearly 10 basis points,

The deal would also lead to “an estimated pro-cyclicality and models negative impact of about -40 bps”, the bank added.