Business Irish

Tuesday 27 June 2017

Regulators still to sign off on AIB loan book deal

FINANCE

John Mulligan

John Mulligan

AIB's sale of its $650m (€487m) Canadian loan book to a US financial firm still hasn't been approved by regulators nearly five months after it was first announced and nearly two months after the buyer expected the deal to close.

The financial services arm of Florida-headquartered stockbroker Raymond James agreed in June to pay an undisclosed sum to acquire AIB's entire Canadian loan book and operations based out of Toronto.

AIB's Canadian portfolio consists of $650m in loan commitments, of which $500m was outstanding at the end of June. Raymond James said at the time the acquisition was announced that the lending book was "highly diverse" and "performing well", with loans located across various sectors throughout Canada.

The transaction was poised to boost Raymond James's corporate and real estate portfolio by 10pc.

However, Raymond James has confirmed the deal with AIB had not been cleared as quickly as had been expected and that approval was still pending.

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