Outside trading hours – regulated information *
Brussels, Dublin, 30 August 2021 (8:00 CEST, prior to stock exchange hours)
KBC Bank Ireland is selling virtually the entire remaining portfolio of non-performing mortgage loans.
No immediate changes or customer action.
After the announcement made 16th In April 2021, as KBC Group and KBC Bank Ireland were exploring options to sell the remaining portfolio of non-performing KBC Bank Ireland mortgages, KBC Bank Ireland can now confirm that it has reached an agreement to sell a portfolio of approximately € 1.1 billion of non-performing mortgages (private residential home (PDH) and purchase to rent (BTL) and a small number of non-mortgage bad loans) in a transaction funded by funds managed by CarVal Investors (“CarVal”).
Upon completion, Pepper Finance Corporation (Ireland) DAC will manage the loans as legal holder. Pepper is regulated by the Central Bank of Ireland. Customers will continue to enjoy the same legal and regulatory protections (for example, under the Consumer Protection Code (CPC) and the Code of Conduct on Mortgage Debt (CCMA)) after the sale.
There are no immediate changes for customers. Customers of KBC Bank Ireland do not need to take any action on today’s announcement. Prior to closing the transaction, KBC Bank Ireland will contact customers whose loans are included in the sale to inform them that their loans are being transferred.
The deal is marginally contributing to a capital increase with cumulative impact (P&L and RWA) on the 2Q21 CET1 KBC Group’s 2Q21 CET1 ratio of about 2 bps. This will affect the profit and loss of KBC Group, which was almost completely paid off in 3Q21 and is estimated at -0.1 billion euros. Risk-weighted assets decrease by 0.8 billion euros.
Johan Tijs, CEO of KBC Group, welcomed today’s deal: “Over the past few years, KBC Bank Ireland has already gradually built up its aging corporate NPL portfolio and bought to lease its mortgage portfolio in Ireland. These sales have now been complemented by the sale of virtually the entire remaining NPL portfolio. This deal allows KBC Bank Ireland to get rid of obsolete loans and further reduce the share of problem loans. ”
KBC Bank Ireland CEO Ales Blazek commented: “I am confident that the agreement we signed to sell virtually the entire remaining portfolio of non-performing mortgage loans, and with Pepper, the post-loan manager, offers a good and sustainable solution for our non-performing mortgage clients. … We can ensure that all clients whose loans are included in the transaction will continue to receive the same legal and regulatory safeguards. Pepper is a well established player in the Irish market. Affected customers will be contacted shortly about specific steps involved. “
CarVal Investors is an established global alternative investment manager specializing in distressed and credit-intensive assets and market inefficiencies. Since 1987, the CarVal team has gone through ever-changing cycles of the credit market, investing $ 130 billion in 5550 transactions in 82 countries. Today, CarVal Investors manages approximately $ 10 billion in assets in corporate securities, loan portfolios, structured loans and hard assets.
Pepper Finance Corporation (Ireland) DAC (“Pepper”) will manage loans upon completion as legal title holder and registered lender. Pepper is regulated by the Central Bank of Ireland, so all clients will continue to benefit from all regulatory safeguards.
For more information, please contact:
Vivian Heybrecht, CEO Corporate Communications / Spokesperson, KBC Group
Web site : www.kbc.com
Kurt De Baenst, General Manager Investor Relations, KBC Group
Tel. + 32 2 429 35 73 – Email: IR4U@kbc.be
KBC Bank Ireland
Edelman – Joe Carmody, CEO – tel. + 353 86 805 87 64 email@example.com
|* This news item contains information that is subject to transparency rules for listed companies.|
KBC Group NV
Havenlaan 2 – 1080 Brussels
Corporate Communication / Spokesperson
Tel. +32 2 429 85 45
Tel. +32 2429 65 01 Steph Leunens
Tel. +32 2 429 29 15 Ilse de Muyer
Tel. +32 2 429 32 88 Peter Cusset
Tel. +32 2 429 85 44 Sophie Spissens
Email address: firstname.lastname@example.org