RBS sells corporate loan commitments portfolio
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.