Oaktree Capital Group LLC has been chosen as the preferred bidder for two portfolios of soured loans with a total face value of 4.7 billion euros ($5.3 billion) that are being sold by Ireland’s so-called bad bank, according to a person with knowledge of the matter.

Lone Star Fund and Cerberus Capital Management LP were also shortlisted for the Project Ruby and Project Emerald portfolios owned by the National Asset Management Agency, according to the person, who asked not to be identified because the process is ongoing.

The Irish government set up NAMA in 2009 to take over 74 billion euros of commercial real estate loans held by the country’s banks and sell them over as many as 10 years.

The agency, which has said it’s on target for a 2.3 billion-euro surplus, could achieve a third of its annual sales forecast with the disposal of Ruby and Emerald, according to a report by broker Cushman & Wakefield Inc.

Spokesmen for NAMA and Oaktree declined to comment.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE