Thursday 16 August 2018

Barclays forms Irish mortgages vehicle

It is understood Barclays edged out Goldman Sachs to secure the hotly-contested portfolio which represented Lloyd's last substantial exposure in Ireland
It is understood Barclays edged out Goldman Sachs to secure the hotly-contested portfolio which represented Lloyd's last substantial exposure in Ireland

Gretchen Friemann

Barclays has formed a new company to hold the £4bn (€4.5bn) Irish mortgage book it snapped up from Lloyds Banking Group earlier this year, in a move expected to signal the refinancing of the loans in the bond market.

Erimon Home Loans Ireland Ltd was formed on June 27, according to Companies Office filings.

James Kelly, the chief risk officer of Barclays Ireland, Padraig O'Driscoll, financial controller at the Irish arm of the UK bank and Tobias Mark Norfolk-Thompson, who works at Barclay's office in London, are listed as the directors.

It is understood Barclays edged out Goldman Sachs to secure the hotly-contested portfolio which represented Lloyd's last substantial exposure in Ireland - linked back to the then Bank of Scotland (Ireland) push into the home lending market here. As previously reported by the Irish Independent, sales documents, seen by this newspaper, show Project Porto, contained performing, though low-margin mortgages.

In total, 96.2pc of the book was "performing" while impaired loans - those on which "payments are over 90 days past due" - represented just 2.64pc.

The majority - 77.1pc of the mortgages - are pinned to tracker rates and linked to homes in Dublin and the city's commuter belt.

Barclays is widely expected to securitise the loans amid a sharp revival for European mortgages among debt capital market investors.

In October Goldman Sachs and Pimco swooped on a €1.8bn portfolio of mortgages offloaded by Danske bank.

By December the consortium had securitised the loans, meaning the mortgages were re-packaged and the income stream sold to investors.

Irish Independent

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