KBC Bank Ireland has confirmed that it has come to an agreement to dispose of a non-performing mortgage loan portfolio of roughly €1.1 billion.
The portfolio concerns private dwelling houses and buy-to-let properties.
The announcement comes following the bank’s announcement on April 16, this year, that it was exploring options to divest the remaining non-performing mortgage loan portfolio of its Irish operation.
The transaction of the portfolio was financed by funds managed by CarVal Investors.
After the transaction is completed, Pepper Finance Corporation (Ireland) will manage the loans as legal title holder. Pepper Finance is regulated by the Central Bank of Ireland.
KBC says that customers will have the same legal and regulatory protections, including those under the Consumer Protection Code and Code of Conduct on Mortgage Arrears, after the sale is completed.
The bank highlighted that there is “no immediate change for customers”, and they do not need to take any immediate action.
KBC said it will contact its affected customers before the closing of the transaction to inform them of the transfer of their loan.
KBC Bank Ireland CEO Ales Blazek said: “I’m confident that the agreement we have signed for the sale of substantially all of the remaining non-performing mortgage loan portfolio and, with Pepper managing the portfolio, offers a good and sustainable solution.
“We can assure that any customers whose loans are included in the transactions will continue to be afforded the same legal and regulatory protections,” Blazek concluded.