Lloyds Banking Group has announced that it is selling a portfolio of Irish commercial real estate loans as part of its strategy to de-risk its balance sheet and reduce its non-core assets.
The portfolio will sell for £149m, and is expected to be completed in the first quarter of 2013. The sale proceeds will be used for general corporate purposes.
The banking giant said that portfolio generated losses of £202m in the 12 months ended December 31st 2011 and revealed the gross assets subject to the transaction are £1,466m.
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In a statement the company said: "The transaction is not expected to have a material impact on the group due to the significant impairment provisions held against the portfolio, which are higher than the average across the Irish wholesale book because of the particularly distressed nature of these assets."
The share price was 2% higher by the early afternoon.
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