Bank of Ireland Group Plc agreed to sell a portfolio of nonperforming exposures mainly secured on buy-to-let investment properties to Promontoria 2019 – SGA DAC, an affiliate of U.S.-based Cerberus Capital Management LP.
Upon completion, the bank will receive a consideration of roughly €150 million for the sale of the portfolio, which has a gross book value of approximately €250 million as of June 30.
Following the deal, Bank of Ireland's NPE ratio will drop to below 5%.
Proceeds from the sale will be used for general corporate purposes. The bank said the deal will lead to a marginal increase in its common equity Tier 1 ratio, while its net interest income will drop by around €3 million on an annualized basis.
