The Royal Bank of Scotland is set to offload a further portfolio of North American corporate loan commitments to Mizuho Bank, a subsidiary of the Mizuho Financial Group.
The transaction follows the announcement on 26 February 2015 of a sale to Mizuho of a portfolio of US and Canadian loan commitments.
The additional portfolio sold to Mizuho comprises $5.6bn (£3.7bn) of loan commitments, including $500m (£330m) of drawn assets as of 28 February 2015, and generated a profit after tax in the region of approximately $20m (£13.21m) in the year to 31 December 2014.
The transaction is expected to be substantially complete by the end of Q3 2015.
RBS said that the cash consideration will be approximately $500m (£330m), generating a loss on disposal, net unamortised fees, of around $30m (£20m).
The final cash consideration will depend on the settlement date portfolio balances, and sale proceeds will be used for general corporate purposes.
RBS added that the original transaction announced on 26 February 2015 “remains on track” and is “subject to progressive closing as customer and agent banks’ consents are obtained”.
Approximately two thirds of the organisation’s North American corporate loan portfolio and associated commitments identified for exit have now been disposed of, together with the announced sale to Mizuho in February.
ruth.gillbe@ft.com
