(Alliance News) - Bank of Ireland Group PLC said late Wednesday it has agreed to sell a portfolio of non-performing exposures for EUR150 million.
Bank of Ireland has agreed to sell the portfolio - predominantly secured on buy-to-let investment properties and which has a gross book value of EUR250 million as at June 30 - to an affiliate of Cerberus Capital Management, Promontoria 2019 - SGA Designated Activity Co.
The transaction will result in a "marginal" increase in the group's common equity tier one ratio while net interest income will reduce by around EUR3 million on an annualised basis.
The proceeds from the sale will be used for general corporate purposes.
"This transaction has enabled the bank to accelerate progress in reducing its NPE ratio. Following this transaction the group's NPE ratio is now below 5%," the bank said.
Bank of Ireland shares closed down 0.6% at EUR3.44 in London on Wednesday.