M&G Investment Management Ltd., the fund management arm of Prudential Plc, is said to be among several bidders looking to acquire a £5.5 billion loan portfolio comprising mainly mortgages issued by Bradford & Bingley Plc, Sky News reported.
The sale process, which has also attracted interest from U.S.-based Blackstone Group LP, is expected to be concluded in the first quarter of 2018.
The proceeds from the sale by UK Asset Resolution Ltd. will be used to repay the remaining £4.7 billion in debt owed to the U.K. Financial Services Compensation Scheme. Approximately £11.0 billion of the £15.7 billion loan has been repaid.
Prudential and Blackstone already acquired two separate B&B asset portfolios for £11.8 billion earlier in April. The £5.5 billion portfolio also includes loans acquired from Kensington Mortgages and GMAC-RFC, Sky noted.
M&G is yet to partner with another firm in the auction but could opt to do so at a later stage of the sale process, sources told Sky, which noted that Morgan Stanley is handling the sale on behalf of the government and UK Asset Resolution.