KBC Bank Ireland has sold a €1.1 billion portfolio of non-performing mortgage loans to funds managed by US private equity giant CarVal. Upon completion of the transaction, the loans will be managed by Pepper Finance Corporation. KBC said consumers will continue to have the same legal and regulatory protections as they currently do following the sale.
The bank said there will be no immediate changes for customers with those affected by the deal to be contacted before the transaction is completed. The portfolio consists of home and buy-to-let mortgages as well as a small number of non-mortgage loans.
KBC Group chief executive Johan Thijs said the sale allows the bank to “clean up” its portfolio of legacy loans, and further reduce its non-performing loans ratio. The portfolio being sold represents “substantially all” of its remaining non-performing mortgage loan portfolio, KBC Bank Ireland said.
