Royal Bank of Scotland is offloading a number of loans as part of a move to strengthen its balance sheet.
The bank announced this morning it had agreed to dispose a portfolio of loans to an entity funded by Deutsche Bank and funds affiliated with Apollo Global Management.
RBS will receive around £400m for the loans when the deal completes in September 2015, pocketing a profit of around £24m after costs.
The proceeeds will be used for “general corporate purposes”, the bank said.
“This transaction, which represents risk-weighted assets equivalent of £679m as at 31 December 2014, forms part of the continued reduction of assets in RBS Capital Resolution and is in line with the bank's plan to strengthen its capital position and reduce higher risk exposures,” it added.
The gross assets were approximately £1.137bn and the loans generated a loss of approximately £70m in the year to 31 December 2014.