27th Apr 2015 06:13
LONDON (Alliance News) - Royal Bank of Scotland Group PLC Monday said it will book a USD30 million, or GBP20 million, loss on disposal after it sold a further portfolio of North American corporate loan commitments to Mizuho Financial Group, coming on top of the deal it did with the same bank in February.
The British bank said the latest loan portfolio it is selling in North America comprises USD5.6 billion of loan commitments, including USD0.5 billion of drawn assets as of the end of February, and generated a profit after tax in the region of USD20 million in calendar 2014.
The cash consideration for the portfolio will be about USD0.5 billion, generating a loss on disposal, net of unamortised fees, of around USD30 million, the bank said.
It expects the deal to be substantially complete by the end of the third quarter of 2015.
RBS in late February sold a loan portfolio to Mizuho at a USD0.2 billion loss on disposal. That portfolio comprised USD36.5 billion of loan commitments.
"The original transaction announced on 26 February 2015 remains on track and is subject to progressive closing as customer and agent banks' consents are obtained. Together with the announced sale to Mizuho in late February, approximately two thirds of our North American corporate loan portfolio and associated commitments identified for exit have now been disposed of," RBS said in a statement.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
RBS.L