Ireland Sells Most of Former Anglo Irish’s $30 Billion Loan BookDonal Griffin and Joe Brennan
Liquidators of the former Anglo Irish Bank Corp. said they agreed to sell most of a 21.7 billion-euro ($30 billion) loan book to buyers including Lone Star Funds LP and Goldman Sachs Group Inc.
Investors agreed to buy more than 90 percent of the loan book from Irish Bank Resolution Corp., liquidators at KPMG LLP said in a statement today, without disclosing how much the loans sold for. The portfolio includes commercial real estate loans and mortgages tied to properties across Ireland and the U.K.
Finance Minister Michael Noonan has said Ireland won’t face a “black hole” as a result of the wind down, which stems from the failures of Anglo Irish and Irish Nationwide Building Society. The government merged and renamed the banks in 2011 and started to liquidate the entity last year. Taxpayers committed about 35 billion euros to the Dublin-based banks.
“The liquidation ensures that no further calls will be made on the taxpayer over those already budgeted,” Noonan said in an e-mailed statement. “These successful sales to third-parties are finally breaking the link between Anglo Irish Bank and the Irish taxpayer.”
Goldman Sachs, Lone Star, CarVal Investors LLC and Deutsche Bank AG are part of a group that bought 85 percent of a 9.3 billion-euro batch of commercial real estate loans, the liquidators said. The liquidators also said they sold 64 percent of a 1.8 billion-euro portfolio of mortgages to Lone Star and Oaktree Capital Group LLC.
A spokesman for Lone Star declined to comment.
Lone Star in February won an auction to buy about 85 percent of IBRC’s 6.3 billion-pound ($10.5 billion) U.K. commercial real estate loan book, two people with knowledge of the matter said at the time. IBRC’s liquidators said in December they agreed to sell 84 percent of the defunct lender’s 2.5 billion-euro Irish corporate loans.