GoldenTree to Buy €800 Million of Bank of Ireland’s UK Loans
- Citigroup will arrange asset-backed debt to fund transaction
- Bank of Ireland has been retreating from UK consumer lending
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GoldenTree Asset Management agreed to buy a portfolio equivalent to about €800 million ($872 million) of UK consumer loans from Bank of Ireland Group Plc, according to people familiar with the matter.
Citigroup Inc. is arranging financing for the deal through a securitization using the Bank of Ireland loans as collateral, said the people, who asked not be identified because the matter is private. The asset-backed deal will be carved into varying portions, said the people. GoldenTree’s managed funds intend to buy the junior part while Citigroup will arrange the rest of the transaction, the people said.