RBS Sells Corporate Loan Commitments Portfolio for GBP498 Million
September 10 2015 - 4:31AM
Dow Jones News
By Razak Musah Baba
LONDON--Royal Bank of Scotland Group PLC (RBS.LN) has sold a
portfolio of corporate-loan commitments related to its banking
business in China for 498 million pounds ($755.1 million), as part
of the bank's strategy to focus mainly on U.K. and European
customers.
RBS said it has reached an agreement with China Construction
Bank Corporation, Hong Kong Branch (CCB), for the sale of a
portfolio of corporate-loan commitments related to its banking
business in China, booked offshore.
The portfolio sold comprises GBP594 million of loan commitments,
with drawn assets of GBP494 million as of July 31, it said.
The cash consideration is expected to be GBP498 million,
generating a profit on disposal of around GBP4 million, RBS said,
adding that the sale proceeds will be used for general corporate
purposes.
RBS said the transaction is expected to be completed in the
fourth quarter of 2015.
The bank, which is 72.9%-owned by the British government, said
in February that it would accelerate its plan to dismantle large
parts of its investment bank, withdrawing from a raft of countries,
including a sharp pullback from the U.S, and to focus mainly on
U.K. and European customers.
Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 10, 2015 04:16 ET (08:16 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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