ING Bank is further reducing its stake in a Thai bank, as part of the Dutch lender's continuing capital management strategy and efforts to improve its capital position.

ING is selling a total of 6.9 billion shares, or around a 7.1% stake, in TMBThanachart Bank to raise about $550 million, according to a term sheet seen by The Wall Street Journal on Wednesday.

Shares are being sold a 2.64 baht each, equivalent to 8 U.S. cents, representing a 9.0% discount to the last closing price of 2.90 baht, the term sheet shows.

The shares were sold through a private placement to institutional investors, ING said in a statement. Following the sale, the Dutch lender's stake in TMBThanachart will fall to 11.6% from 19.5%.

ING said the transaction is expected to have a small positive impact on its profit and loss account and CET1 ratio, a key measure of a bank's capital strength.

ING has been gradually reducing its stake in TMBThanachart as part of its efforts to optimize its investment portfolio. In June, ING participated in TMBThanachart's share buyback program, reducing its stake to 19.5% from 23.1%.

That divestment gave ING about 243 million euros in gross proceeds, equivalent to $281.3 million.

BofA Securities and J.P. Morgan are acting as placing agents for the latest ING deal.