KBC Bank Ireland said it has finalised a deal announced in August for the sale of a non-performing mortgage loan portfolio of about €1.1 billion to in a transaction financed by funds managed by CarVal Investors.
The loans are mainly non-performing home mortgages and buy to let mortgages.
Pepper Finance Corporation (Ireland) will be managing the loans as legal title holder.
Pepper is regulated by the Central Bank and so customers will continue to have the same legal and regulatory protections after the sale.
KBC Bank Ireland said it had contacted the customers whose loans are included in the sale beforehand to inform them that their loans were being transferred.
The bank said last April that it was exploring options to divest its remaining non-performing mortgage loan portfolio and had entered talks with Bank of Ireland about the sale of the majority of its Irish business.
The Belgian bank first entered the Irish market in 1978 through the majority acquisition of Irish Intercontinental Bank and has 1,246 employees across its 12 hubs around the country.
KBC had €10 billion worth of loans, €5 billion in deposits and a 12.6% share of the mortgage market at the end of 2020. Its impaired loans stood at €1.4 billion or 14% of its total loan book.
It also had about 320,000 customers at the end of 2020.
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