9 Jul 2015 15:50
permanent tsb Group Holdings plc ("PTSB" or the "Company")
Deleveraging Update
Thursday 9th July 2015. PTSB has agreed to the sale of a portfolio of non-core Irish based commercial real estate loans with a par value of €481 million to Cheldon Property Finance ltd, an investment vehicle established and managed by CarVal Investors, LLC (the "Transaction"). The Transaction, which is line with the Group's stated strategy of deleveraging non-core loans means that the Group has now completed the sale of c. €2.5bn of Irish based loans together with €3.5bn of UK based loans in the past 8 months. The Group will continue to deleverage remain non-core assets, in particular the remaining €3.5bn of non-core UK assets, over the next 12 months.
The loan portfolio comprises exclusively of non-performing commercial real estate loans. PTSB was advised by Morgan Stanley & Co International plc. The transaction is capital accretive to the Group and is expected to close by mid October 2015.
Speaking today, Paul Byrne, Group Treasurer, said; "this transaction means that we have completed over 62% of our total deleveraging target for non-core loans well ahead of schedule and it reflects continued interest in Irish assets."
Group CEO, Jeremy Masding said: "The sale of these non-core loans is a key objective for the Group and as these sales progress, they ill allow us to concentrate our activities on our core retail banking business in Ireland."
Contacts
Media
Ray Gordon
Gordon MRM
ptsb@gordonmrm.ie
Phone: +353 (0)87 2417373
Investor Relations
Rajesh Manirajan
Head of Investor Relations
Investorrelations@permanenttsb.ie
Phone: +353 (0)1 6695000