Tuesday 12 December 2017

Anglo takes deposits on $9.5bn US portfolio


Laura Noonan

ANGLO Irish Bank has taken deposits from all three buyers of its $9.5bn (€6.9bn) US property portfolio and will begin moving across the first loans next week.

The news comes almost three months after Anglo, recently renamed as the Irish Bank Resolution Corporation (IBRC), agreed to sell the portfolio to Wells Fargo, JP Morgan Chase and Lone Star. Sources last night confirmed that all three bidders had now signed sale documents and paid deposits.

The first loans will be moved across to their new owners next week and transfers are likely to continue until at least mid-November, the Irish Independent understands.

Anglo will be paid for each batch of loans as they are physically transferred across and the bank expects to have all the money by Christmas.

While the names of the successful bidders and general terms of the sales have been widely reported, Anglo has never publicly confirmed the sale. A formal announcement will only be made once bidders have taken across their whole tranche of assets.

The US deal is the biggest Irish banking sale in recent times and was done at a discount of about 20pc on the face value of the loans.

Anglo chairman Alan Dukes recently said the bank would "devote more energy" to selling its €9.5bn UK loan book once the US loan transfers were completed.

The UK loan book is a more challenging prospect than the US one given the smaller market and the volume of other assets on sale there.

The profile of the book means that loans are likely to be offloaded in a number of staggered transactions, rather than as a whole.

Anglo chief executive Mike Aynsley recently told his staff that UK major sales were not "imminent", but that the bank would be ready to move "when markets are favourable".

Once the UK book is offloaded, Anglo will be left with less than ¤10bn of loans.

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