AIB agrees to sell €1.1bn portfolio of non-performing loans

AIB has agreed to sell a portfolio of non-performing loans to a consortium led by Cerberus Capital Management.

The consortium includes an Irish debt-management firm, Everyday Finance, and the portfolio contains loans in "deep, long term" arrears with around 90% more than two years in arrears and around 70% more than five years in arrears.

The bank said: "The portfolio is underpinned by investment asset properties and excludes private dwelling houses and family farm homes."

The portfolio has 800 customers with an average loan balance of €1.4m and AIB said it does not include loans that have been restructured and deemed to be performing by the bank.

When completed, AIB said it will receive €800m from the deal which will be used for ongoing liquidity management.

- Digital Desk

More in this Section

Shock resignations in UK Cabinet spark pound sell-off

Former trader behind UK’s biggest banking fraud deported to Ghana

Rebuilding semi-detached home soars to €227,440

Pfizer patent blow after UK ruling on €4.4bn pain drug

Breaking Stories

A moving tale of poverty and childhood

Making you Sweat at legendary house night in Sir Henrys

Ask Audrey: The tuition in the Churchfield School of Proper English do be for nathin’, girl

Learning valuable lessons from the past

More From The Irish Examiner