IL0A.L Regulatory News (IL0A)

21 September 2022

PERMANENT TSB GROUP HOLDINGS PLC

SALE OF BUY TO LET LOAN PORTFOLIO

Permanent TSB plc ("PTSB", the "Bank"), a wholly owned subsidiary of Permanent TSB Group Holdings plc has agreed the sale of a portfolio of predominately performing Buy-To-Let ("BTL") originated loan accounts (the "Portfolio") to be funded by way of a securitisation via Glenbeigh 4 Seller DAC, a newly incorporated entity, which is intended to be funded by funds managed by Pacific Investment Management Company LLC ("PIMCO") and arranged by Citibank, N.A., London Branch. The proceeds will be used for general corporate purposes including the completion of the Ulster Bank transaction.

As has been the case with previous loan sale and securitisation transactions undertaken by the Bank, all customers whose loans are included in this transaction will continue to have the same regulatory protections under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Arrears (CCMA) after the sale.

The loans within the Portfolio will continue to be serviced by PTSB for a period of up to six months. At the end of this period, legal title and loan account servicing will transfer to Pepper Finance Corporation (Ireland) DAC trading as Pepper Asset Servicing ("Pepper"), which is regulated by the Central Bank of Ireland.

This transaction will increase the Bank's transitional Common Equity Tier 1 (CET1) Ratio by c. 95 basis points (Fully loaded: c. 85 basis points) and the transitional Total Capital Ratio by c. 125 basis points (Fully loaded: c. 115 basis points) once fully completed1.

Details of the Portfolio and Transaction:

The transaction involves the sale of a pool of c. 5,170 BTL loan accounts secured on c. 6,195 properties. The loan accounts are linked to c. 4,915 borrowing relationships (a borrowing relationship can be a single borrower or two or more joint borrowers). All loans originated as loans secured on BTL properties.

The Portfolio has a gross balance sheet value of c. €770 million, a net book value of c. €700 million and an overall risk weight intensity of c. 65%. Approximately 86% of the Portfolio is on a tracker product, 12% on a variable product and remaining on a fixed rate product. Approximately 6% are categorised as non-performing by reference to regulatory definitions. In the year to December 2021, the Portfolio generated gross interest income of c. €14 million and an operating profit2 of c. €2m. At completion, PTSB will receive a cash consideration of c. €700 million.

Post Transaction Loan Servicing:

The terms and conditions of individual loan accounts are unaffected by this transaction, and will continue to apply post the transfer to Pepper. The Bank is writing to all customers, whose loans are included in the transaction, to inform them of this development.

Customers can contact our team on 01 212 4101. Our lines are open from Monday to Friday 9am until 5pm (excluding public holidays).

Ends

Note on forward-looking information:

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group undertakes no obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.