Royal Bank of Scotland has agreed the sale of another tranche of the Project Finn loan portfolio to Cerberus Capital Management.
The US private equity firm will pay £225m in cash for the portfolio of residential loans with a £436m valuation in risk-weighted assets as of the end of December 2014.
The face value of the loans is around £549m, with the carrying value of the loans £223m. The loans generated a loss of around £17m in the 12 months to the end of December 2014. The disposal is expected to generate £1m in profit after costs.
This is the second agreed sale from the €2.6bn (£1.8bn) Project Finn portfolio from RBS’s bad bank, RBS Capital Resolution. The commercial real estate tranche was sold this morning to a joint venture between Deutsche Bank and Apollo for £400m.
The Finn portfolio has a remaining tranche of SME loans to operating companies with a face value of €300m.
