Permanent TSB Sells Portfolio of Accounts to Citi for EUR1.2 Billion
October 27 2020 - 4:21AM
Dow Jones News
By Joe Hoppe
Permanent TSB Group Holdings PLC said Tuesday that it has agreed
to sell a portfolio of performing property loan accounts to a U.K.
branch of Citigroup Inc, for around 1.2 billion euros ($1.42
billion) on completion.
The Dublin-listed lender said the portfolio, a pool of 3,700
buy-to-let loan accounts linked to around 3,400 borrowing
relationships, had a gross balance sheet value of EUR1.4 billion,
and a net book value of EUR1.2 billion. In 2019, it generated gross
interest income of around EUR15 million and an operating profit of
around EUR2 million.
All loans originated as loans secured on buy-to-let properties,
largely consist of interest-only repayment terms, have an average
balance of around EUR375,000 and an average remaining term of 10
years. The portfolio will continue to be serviced by Permanent TSB
for six months, before transferring the title. After completion,
Citibank NA London will syndicate the portfolio via
securitization.
"This transaction will increase the Bank's transitional Total
Capital Ratio by 2.1%, strengthen the balance sheet and provide us
with resources to compete in our core markets of personal
mortgages, personal lending and SME lending," said Chief Executive
Eamonn Crowley.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
October 27, 2020 04:06 ET (08:06 GMT)
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