AIB agrees to sell €1.1bn portfolio of non-performing loans
AIB has agreed to sell a portfolio of non-performing loans to a consortium led by Cerberus Capital Management.
The consortium includes an Irish debt-management firm, Everyday Finance, and the portfolio contains loans in "deep, long term" arrears with around 90% more than two years in arrears and around 70% more than five years in arrears.
The bank said: "The portfolio is underpinned by investment asset properties and excludes private dwelling houses and family farm homes."
The portfolio has 800 customers with an average loan balance of €1.4m and AIB said it does not include loans that have been restructured and deemed to be performing by the bank.
When completed, AIB said it will receive €800m from the deal which will be used for ongoing liquidity management.
