KBC Bank Ireland completes sale of €1.1bn loans portfolio to CarVal

KBC Bank Ireland has completed the sale of a €1.1 billion portfolio of non-performing mortgage loans to funds managed by US private equity giant CarVal.

The deal for the portfolio, which consists of home and buy-to-let mortgages as well as a small number of non-mortgage loans, was announced in late August.

KBC said it had been in contact with customers whose loans are included in the sale before the deal completed to inform them of the transaction. Following completion, the loans will be managed by Pepper Finance Corporation.

The transaction is marginally capital accretive with a combined impact of about 2 basis points of KBC Group’s CET1 ratio, the bank said.

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KBC Group is also in the process of selling its remaining €9.2 billion of Irish loans, which largely comprise mortgages, to Bank of Ireland as it departs the Irish market.