AIB will buy commercial loans from Ulster Bank for 4.2 billion euros

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AIB has entered into a deal to purchase existing corporate and commercial loans from Ulster Bank for about 4.2 billion euros.

The bank said the deal was reached in accordance with a Memorandum of Understanding announced in February when the owner of Ulster bank NatWest announced that it would withdraw from the Irish market.

It also follows the due diligence period for the loan portfolio.

AIB will acquire the portfolio for € 4.1 billion, equivalent to 97.63% of par value, with a cash payment from existing resources.

It states that the exact size of the portfolio and the remuneration to be paid will depend on the movement of the portfolio until its completion.

The transaction remains subject to the usual regulatory approvals, after which AIB intends to transfer the loan portfolio on a phased basis over a period of 12 to 18 months to ensure optimal results for clients.

As a result of today’s deal, about 280 Ulster Bank employees who are directly involved in servicing the loan portfolio will be transferred to AIB, the final number of roles will be confirmed upon completion of the deal.

In a statement, Ulster Bank said there were no immediate changes for customers, adding that it remains open to new and existing business for all customers.

It states that commercial bank managers will continue to actively engage with business clients throughout this process.

He added that the future transfer will not affect the legal and regulatory protections of the affected customers.



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