KBC Bank Ireland – which is in the process of exiting the banking market in the Republic – has completed the sale of a roughly €1.1bn portfolio of non-performing mortgage loans to US private equity house CarVal.
The transaction agreement was first agreed at the end of last August. Pepper Finance will manage the mortgage portfolio going forward.
The sale includes a mix of home mortgages, buy-to-let mortgages and non-mortgage loans.
KBC Bank Ireland said it contacted the customers whose loans are included in the sale beforehand to inform them that their loans were being transferred.
KBC is currently in the process of selling its remaining €9.2bn worth of Irish loans, mainly made up of mortgages, to Bank of Ireland.