Britain's Lloyds Banking Group has sold a portfolio of Irish home loans for Â£257 million ($419.4 million) to U.S. private equity firm Apollo, as the bank continues to shed bad property deals.
Lloyds, which is one-third owned by the U.K. government, has lost billions of pounds in Ireland after the financial crisis and has been working on cutting non-core assets from its portfolio. The non-performing loans in the deal had a nominal value of Â£610 million and were sold at a 58 percent discount of that, Reuters reports.
Tanager Limited, an entity affiliated with Apollo Global Management, purchased the latest loan portfolio. The portfolio lost Â£33 million last year, the bank said. Existing provisions taken against the assets wold prevent the deal from having a material impact on the bank.
The deal is due for completion in the first half on 2014.