RBS in talks about Ulster Bank cash injection

Royal Bank of Scotland is in talks with private equity group Warburg Pincus about injecting cash into Ulster Bank, according to a report in the Sunday Times.

The paper said RBS had also spoken to CVC, KKR and Permira about injecting cash into Ulster Bank to bolster its capital position, possibly in advance of it being merged with another Irish bank, probably Permanent TSB.

The paper said Ulster Bank could be floated on the stock market at a later date. City sources were reported as saying there was a strong conviction among some RBS executives that a deal could be clinched for Ulster Bank.

Johnny Ronan loan deals

FTSE-listed property group Development Securities is to buy €300 million worth of loans connected with Irish property developer Johnny Ronan from the National Asset Management Agency.

Ronan is also reported to have raised €100 million to pay down his Nama exposure with the sale of properties in Dublin and Chinese investments. His Nama loans amount to €400 million.

The Sunday Independent said this would represent par value for Nama on the original loans, which were held by Bank of Ireland and AIB.

Mount Wolseley frontrunner

Investment group Brehon Capital Partners was reported by the Sunday Business Post to be the frontrunner to buy the Mount Wolseley hotel and golf resort out of examinership. The Carlow resort, which owes banks €60 million, was given High Court protection from its creditors in April and is said to be worth in the region of €6.5 million.

The examinership application was opposed by Bank of Ireland, which is owed €28 million.

HSE’s Mount Carmel bid

The Health Service Executive is the surprise preferred bidder for the Mount Carmel private hospital in Dublin, which is being sold by the National Asset Management Agency after closing in January with the loss of 300 jobs, the Sunday Times reported.

The hospital, on 4.9 acres in Churchtown, was put on the market for €12 million and was expected to sell to a property developer as a site for housing. The HSE was reported to have submitted the “most credible” bid.

BNP Paribas sanctions

BNP Paribas, France’s biggest bank, may secure a better- than-expected settlement with the US for alleged dealings in countries including Iran and Sudan, French finance minister Michel Sapin said yesterday.

“I think we’ve progressed toward more equitable sanctions”, which won’t overly burden the bank’s future and its lending abilities, Sapin said in an interview on Europe 1 radio and i-Tele.

Benjamin Lawsky, New York’s top banking regulator, was said to be seeking more than $10 billion (€7.4 billion) in fines, a guilty plea and the suspension of BNP’s dollar-clearing operations to settle the investigation.