Equity firm Apollo buys $419.4m (€307m) of Irish home loans from Lloyds
US private equity firm Apollo has bought a portfolio of Irish home loans from Lloyds Bank for €307m, less than half their nominal value.
Lloyds, which is one-third owned by the UK government, said today the non-performing loans had a nominal value of £610m (€367m). They were sold at a 58pc discount to that value.
They were bought by Tanager Limited, an entity affiliated with Apollo Global Management.
Lloyds said the portfolio made a loss of £33m last year and the sale was part of the run-down in its non-core assets.
The bank said the deal was positive for its capital position and would not have a material impact due to existing provisions taken against the assets. The deal is expected to complete in the first half on 2014.
Lloyds last week sold a €1bn book of euro-zone commercial real estate loans to US hedge fund Cerberus at a 21pc discount to their nominal value.