U.K. Government Sells GBP5.30 Billion of Nationalized Mortgages to Barclays-Led Group

By Adam Clark

The U.K. Treasury said Thursday that it has sold two portfolios of mortgages that were nationalized in the wake of the 2008 financial crisis for 5.30 billion pounds ($7.39 billion) to an investor group led by Barclays PLC (BARC.LN).

The portfolios were acquired by the U.K. government in its nationalization of the Bradford & Bingley bank. The government said the proceeds from the sale will be used to repay the loan made to Bradford & Bingley and therefore reduce the national debt.

"We are determined to recover the money the taxpayer invested during the financial crisis as soon as we can. The sale of these Bradford & Bingley loans is yet another significant step in putting the crisis behind us," said Chancellor Philip Hammond.

The mortgages are being sold to Barclays subsidiaries, which are being provided with equity funding by the U.S.'s Pacific Investment Management Company LLC, and debt financing from six of the financial services institutions subject to the U.K.'s levy for compensation payments.

The sale leaves the U.K. government managing GBP14 billion worth of nationalized assets from the financial crisis, down from GBP116 billion in 2010.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

April 26, 2018 03:28 ET (07:28 GMT)

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