Permanent TSB is to sell a portfolio of mostly performing buy-to-let mortgages for €700m.
The deal is to be funded through a securitisation through a new entity called Glenbeigh 4.
It is to be funded by money from funds that are managed by US investment manager, PIMCO.
For the next six months the mortgages will be serviced by Permanent TSB.
After that legal title and the servicing will move to Pepper Finance.
Customers whose loans are transferring will continue to have the same regulatory protections under Central Bank rules.
"The Bank is writing to all customers, whose loans are included in the transaction, to inform them of this development," PTSB said.
The portfolio consists of 5,170 buy-to-let loan accounts belonging to 4,915 individual or joint borrowers and which are secured on 6,195 properties.
The bank said the loans have a gross balance sheet value of €770m and a net book value of €700m.
86% of the loans are tracker mortgages, 12% have a variable rate and the balance are using a fixed rate.
6% are non-performing loans.
The interest income from the loans is currently worth around €14m and the operating profit is €2m.
The development marks the latest loan sale by the bank, which is currently in the process of purchasing a large chunk of the business of the departing Ulster Bank.
