- June 28, 2021
- Posted by: Stratford Team
- Category: Business
LONDON (Reuters) -Natwest Group said on Monday it had agreed to sell most of its Irish commercial lending business to regional peer Allied Irish Banks, as part of the British lender’s planned exit from Ireland.
The deal will see AIB take over around 4.2 billion euros ($5.01 billion) in gross performing commercial lending and associated undrawn exposures of around 2.8 billion euros from Natwest’s Ulster Bank.
Natwest said it expects to make a small gain on the disposal. As part of the deal, 280 employees will transfer to AIB.
Natwest said in February that it was to wind down its Irish arm as Chief Executive Alison Rose slashes underperforming parts of the state-owned lender after it swung to a loss in 2020.
AIB said in a separate statement that it would pay 4.1 billion euros for the loans, equivalent to 97.63% of par value, using its existing cash pile. After receiving regulatory approval, it plans to migrate the loans over 12-18 months.
AIB said the…
