Purchase of Student Loans

25 November 2013

Arrow Global Group PLC

("Arrow Global" or "the Group")

Government sells student loans to Arrow Global and CarVal Investors

Arrow Global, one of Europe's largest and fastest growing providers of debt purchase and receivables management solutions, is pleased to announce that a consortium led by CarVal Investors and Arrow Global has been selected by the Government following a competitive bidding process to purchase student loans owed by around a quarter of a million borrowers.

Erudio Student Loans Limited, an investment trustee which is entirely funded by CarVal Investors and Arrow Global, was selected after a competitive process and will take control of the portfolio of loans from the Student Loans Company in the New Year. This is the last remaining publicly-owned portfolio of mortgage-style student loans and it is first time the Government has completed such a sale to the private sector since 1999.

Arrow Global, which will be the master servicer for the entire portfolio, has invested £11m in acquiring the student loans and has a commitment to invest up to a further £22m in assets arising from the transaction by January 2016. Combined with the other student loan deals Arrow Global has done, the Group will master service more than £1bn of student loan assets by face value once all relevant contracts and migrations mature which is expected in 2014. 

Tom Drury, Chief Executive Officer of Arrow Global, commented:

"We are delighted to have been named by the Government as the successful bidder in this student loans sale. This is an important step for Arrow Global towards delivering this year's financial goals and positioning the business for growth in future years. We are committed to the Treating Customers Fairly principles and look forward to working with our partners to deliver an effective and seamless service to borrowers."

Arrow Global will continue to develop and seek additional student loan opportunities that meet our investment criteria. 

For further information about the transaction:

https://www.gov.uk/government/news/sale-of-mortgage-style-student-loan-book-completed

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