Monday 23 October 2017

Davy a final bidder to buy back its own €140m Anglo loans as part of IBRC sale


Roisin Burke

Stockbroking and wealth management firm Davy is through to the final round of bidding for its Anglo debt.

It's €140m loans is being sold as part of the IBRC special liquidator debt auction attached to businesses including Topaz, TV3, Arnotts and Jurys Inn.

It's speculated that Davy could be the only horse in the race for its own borrowings, with support from Bank of Ireland in its bid.

The loans are among the few in the book, called Project Evergreen, believed to be performing fully, with payments due in March and October.

Anglo Irish Bank was a Davy lender from 2006, with loans originally in the region of €300m, now substantially paid down and final payment due in the next couple of years.

Final bids for all loans in the IBRC portfolio are due in on December 6.

The 80-year-old equities house is on an acquisition mission, Davy chief executive Tony Garry said yesterday.

It hopes to close the sale of Prescient, the former AIB investment manager business, this side of Christmas if the Central Bank approves the deal, and is looking at other businesses in both the Republic and Northern Ireland.

Davy's Anglo debt may have been light on bids due to the limited discount rate one source with knowledge of the process said.

"If someone bought the loans they would get less than market rate returns," they said.

"It's very mean and tight when you could get margin of around 7pc on prime commercial property for example.

"Davy should be able to write a big cheque."

Having dropped numbers in 2008, Davy has added 120 staff over the last three years to employ 520 people.

Last year it absorbed troubled stockbroking firm Bloxham's private client business.

Its property business now manages €1bn worth of assets, Garry said.

He declined to comment on the IBRC bid process while it is ongoing.

Irish Independent

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