Ulster Bank has agreed a deal to sell its remaining residual portfolio of loans, worth almost €700m, as part of its exit from the Republic of Ireland.
The agreement will see personal and commercial loans, which are both performing and non-performing, sold to Elmscott Property Finance DAC.
It is financed by funds that are managed by Carval Investors, the US based global investment manager that is focused on distressed assets.
However, credit servicing firm Pepper Finance, will become the legal owner and servicer of the loans.
"This residual portfolio, which consists of mostly non-performing mortgages; performing and non-performing unsecured personal loans and commercial facilities, was first signalled in 2021 and was sold as part of our phased withdrawal from the Republic of Ireland," Ulster Bank said in a statement.
"We have written to some customers in-scope for this transaction, to give them at least two months' notice of sale prior to completion and transfer of their facility, as required, and advise them of the next steps."
"Other customers whose facility may be included in the transaction at a later date, will be written to later this year."
Ulster Bank said it expects the bulk of the loans will move to Pepper later this year and impacted customers will be informed within a week of that transfer.
The development, first reported by the Irish Times, is the latest move as part of its wind down of operations here that was announced in February 2021, in an effort by parent NatWest to free up capital.
Since then, it has sold the vast majority of its loan portfolios to Permanent TSB and AIB, as well as a large chunk of its branch portfolio to PTSB.
Remaining branches have been closed.
Ulster Bank has still to sell its portfolio of off-set mortgages.
