(Ecofin Agency) - Morocco’s Banque Centrale Populaire said it is mulling over selling a stake to an East Asian banking institution to strengthen its capital. The information was relayed by Bloomberg, which cited a source close to the matter.

The partnership project, which is subject to shareholders’ approval, is part of the Moroccan bank’s strategic development plan for the next five years. BCP said once shareholders give their green light, it will engage in talks with banks from China or Singapore in 2021.

Under this operation, BCP is seeking new growth opportunities to mitigate a decline in activity over the first six months this year. The institution’s consolidated net profit slid by 48% to MAD1.3 billion in H1 2020 while the net income group share fell by 38% to MAD1.01 billion.

BCP’s new 5-year development program is seen as a preparation for the post-Covid-19 period.

Chamberline Moko