RBS announces loan portfolio disposals


RBS announces loan portfolio disposals

RBS announces today the agreement to dispose of a portfolio of loans to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management, LLC. RBS also announces the disposal of a further portfolio of loans to an entity affiliated with Cerberus Capital Management, L.P.

Our news

23 July 2015

RBS announces loan portfolio disposal to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management LLC

At completion, RBS will receive cash consideration of approximately £400m at current exchange rates. Completion is expected in September 2015. The disposal proceeds will be used for general corporate purposes.

This transaction, which represents RWA equivalent of £679m as at 31 December 2014, forms part of the continued reduction of assets in RBS Capital Resolution and is in line with the Bank's plan to strengthen its capital position and reduce higher risk exposures.

The carrying value of the loans as at 31 December 2014 was approximately £376m. The gross assets were approximately £1.137bn and the loans generated a loss of approximately £70m in the year to 31 December 2014. The disposal of the portfolio is expected to generate a profit of approximately £24m after costs associated with the transaction.
 

RBS announces further loan portfolio disposal to an entity affiliated with Cerberus Capital Management, L.P.

At completion, RBS will receive cash consideration of approximately £225m at current exchange rates. Completion is expected in September 2015. The disposal proceeds will be used for general corporate purposes.

This transaction, which represents RWA equivalent of £436m as at 31 December 2014, forms part of the continued reduction of assets in RBS Capital Resolution and is in line with the Bank's plan to strengthen its capital position and reduce higher risk exposures.

The carrying value of the loans as at 31 December 2014 was approximately £223m. The gross assets were approximately £549m and the loans generated a loss in the region of approximately £17m in the year to 31 December 2014. The disposal of the portfolio is expected to generate a profit of approximately £1m after costs associated with the transaction.

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