UPDATE 1-BES sells stake in Bradesco for 2 bln reais

Thu Apr 28, 2011 5:58pm BST

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* Sells 4.1 percent voting stake in leading Brazilian bank

* Sale improves core Tier 1 capital ratio by about 30 bps

(Adds background, stock price)

LISBON, April 28 (Reuters) - Portugal's Banco Espirito Santo (BES.LS) said on Thursday it agreed to sell a voting stake of 4.1 percent in Brazilian bank Bradesco (BBDC3.SA) (BBDC4.SA) for around 2 billion reais (852 million euros).

BES added that the sale of the stake would have a positive impact of around 30 basis points on its core Tier 1 capital ratio, which stood at 7.9 percent at the end of last year.

Portuguese banks have been frozen out of interbank loan markets due to the country's sovereign debt crisis and forced to rely on the European Central Bank for funding. The Bank of Portugal has urged them to deleverage by selling assets and to improve capital ratios.

BES said it has agreed to sell the stake to Cidade de Deus Companhia Comercial de Participacoes, a holding company linked to Bradesco.

BES shares closed nearly 1 percent higher at 2.881 euros before the announcement, outperforming the broader market in Lisbon, which closed up 0.41 percent. (Reporting by Shrikesh Laxmidas and Andrei Khalip; Editing by Will Waterman)