Agri-loans included in Rabobank’s €800 million portfolio sale

Dutch-based banking and financial services firm Rabobank has sold off an €800 million loan portfolio formerly owned by ACC Loan Management.

The portfolio has been sold to a consortium of Goldman Sachs and CarVal Investors, while the sale of the unsecured loan portfolio has been agreed with Cabot Financial.

AgriLand understands that the number of agricultural loans involved in the sale is a figure approaching 2,000, and that a lot of these are performing loans.

ACC, originally known as the Agricultural Credit Corporation, was established by the Free State government in 1927 to finance agriculture. The government sold ACC to Rabobank in 2002.

Rabobank says that the loan sale will have a “small positive impact” on the group’s 2019 net profit.

The company claims that the sale is in line with its ‘balance sheet optimisation programme’ to reduce its non-core assets.

In a statement, Rabobank said that the sale will take place “no sooner” than two months after borrowers have been notified.

It also pointed out that all obligations in respect of acquired loans and loan documents will continue to be owed to Rabobank, pending the completion of the sale.

AIB

Earlier this month, AIB announced the sale of a non-performing loan portfolio worth €1 billion, which included “limited agricultural exposure”.

The group agreed to sell the portfolio to Everyday Finance as part of a consortium arrangement with Everyday and affiliates of Cerberus Capital Management.

An AIB statement, released at the time, said: “This is another important step in our non-performing exposure de-leveraging strategy, and we remain on track to reach approximately 5% by the end of 2019.”

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