Bank of Ireland (Governor & Co) (IRE) said Monday it has agreed to sell Burdale to Wells Fargo Bank NA for EUR690 million.

MAIN FACTS:

-Transaction will be effected by way of a sale of Burdale Financial Holdings Ltd., or BFHL, the U.K. entity, to Wells Fargo International Banking Corporation, or WFIBC, and a sale by Burdale Capital Finance Inc., or BCF, the U.S. entity, of its loan book to Wells Fargo Bank NA.

-In the year ended Dec. 31, 2010, BFHL generated profit before tax of GBP20.7 million; as at Dec. 31, 2010, BFHL's gross assets amounted to GBP352 million and BCF's gross assets amounted to GBP242 million.

-Under transaction, Bank will incur an aggregate discount of circa GBP4.7 million on the combined net asset value of BFHL and the net asset value of the BCF loan book at completion.

-Upon completion, WFIBC will satisfy any indebtedness owed by BFHL to the Bank.

-Total cash proceeds will further reduce Bank's wholesale borrowings including those from Monetary Authorities in line with the Bank's deleveraging plan.

-Sale won't adversely impact the Group's Core Tier 1 ratio.

-Loan redemptions and repayments remain in line with expectations and deposits have increased since Oct. 31.

-By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com