KBC Bank Ireland said Monday that it has agreed to sell nearly its entire remaining portfolio of approximately 1.1 billion euros ($ 1.30 billion) of nonperforming mortgage loans to funds managed by CarVal Investors.
Following the completion of the transaction, Pepper Finance Corporation (Ireland) DAC will manage the loans as the legal title holder, KBC reported.
There are no immediate changes for clients, and KBC Bank Ireland will contact clients whose loans are included in the sale and inform them that the loans are being transferred, it said.
The deal will marginally increase KBC’s capital, it added, but will damage the group’s revenues by about € 100 million, almost entirely in the third quarter of 2021.
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