Lloyds flogs Australian loan portfolio

Lloyds Banking Group is to sell a portfolio of Australian real estate loans for 388m pounds.

The collection of loans, made to the corporate sector, was for a total £809m but generated losses of £183m in the 12 months to the end of December 2011.

The buyer is AET SPV Management, a joint venture between Morgan Stanley and Blackstone.

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Lloyds says the impact of the transaction "is not material due to the existing provisions taken against these assets."

Lloyds, which is around 40% owned by the British taxpayer following a bailout in 2009, says the sale proceeds will be used to repay debt.

BS