Bank of Cyprus Plans UK Loan Portfolio Sale
The Bank of Cyprus confirmed that it plans to sell a UK loan portfolio, which is mainly comprised of commercial and residential real estate to Mars Capital Finance Limited.
It is valued at 361 million euros and is predicted to be finalized by October 31st, 2014. The Bank of Cyprus stated, "The transaction will enhance the Group's liquidity and will have a small positive impact on the Group's Common Equity Tier 1 capital due to the release of risk weighted assets".
The loan portfolio is not linked to the Group's Bank of Cyprus UK Limited; it is a portion of the larger UK loan portfolio shifted to the Group after the acquirement of specific undertakings of Cyprus Popular Bank Public Company Limited.
The Bank added, "the sale of the Loan Portfolio is in line with the Group's Restructuring Plan and is part of the Group's strategy of deleveraging through the disposal of non-core operations and of focusing on core businesses while, at the same time, strengthening its capital and liquidity position", according to Parikiaki.
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