RBS sells portfolio of corporate loans for €1.4 billion

19 August 2010

The Royal Bank of Scotland Group (RBSG) is to sell a portfolio of corporate loans for €1.4 billion ($1.8 billion).

According to the group, Intermediate Capital Group (ICG) is to acquire the portfolio of senior loans, which are from “across a diversified range of sectors”.

The Credit Fund Management arm of ICG will be responsible for the management of the loan portfolio.

It will run these new additions to its asset-base alongside the €4.7 billion worth of securities the investment vehicle already contains.

In a statement, RBS said: “RBS continues to demonstrate progress with its strategic plan. This sale is in line with the group's strategy to reduce its funded balance sheet and exposure to its existing leveraged loan book within its non-core division.”

Christophe Evain, chief executive officer of ICG, added: “ICG has a strong track record of investing in European senior loans. We believe this portfolio acquisition from RBS underlines the strength of our origination capability and the depth and breadth of our credit expertise.”

The deal is expected to be closed by the end of August.

By Jim Ottewill

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