BAnk of Ireland has joined up with US investment bank Goldman Sachs to buy a portfolio of loans from Danske Bank.
The portfolio, which has a face value of €540m, has been split with Bank of Ireland taking loans that were originally worth €274m.
The remaining €266m worth of debt has been taken over by Goldman Sachs and will be managed by Pepper, an Australian firm that set up in Ireland to work out loan books from the troubled banking sector here.
The loans are believed to cover a mix of commercial property, business and farming and are mostly focused on Ireland.
Bank of Ireland is understood to have acquired the performing part of the portfolio, while Goldman has taken on the distressed loans.