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Irish lender PTSB sells buy-to-let portfolio to Citibank for 1.2 billion euros

Credit: REUTERS/LUCY NICHOLSON

Ireland's permanent tsb (PTSB) on Tuesday announced the sale of a portfolio of 3,700 buy-to-let mortgage accounts for a consideration of 1.2 billion euros ($1.4 billion) to a subsidiary of U.S. bank Citibank.

DUBLIN, Oct 27 (Reuters) - Ireland's permanent tsb (PTSB) IL0A.I on Tuesday announced the sale of a portfolio of 3,700 buy-to-let mortgage accounts for a consideration of 1.2 billion euros ($1.4 billion) to a subsidiary of U.S. bank Citibank C.N.

The sale of the loans, which are predominately on interest-only repayment terms, are classified as performing and have an average remaining term of 10 years, PTSB said in a statement.

Citibank, which is making the purchase via Citibank NA London, intends to syndicate the portfolio via securitisation following completion of the acquisition, the PTSB statement said.

"This transaction will increase the Bank's transitional Total Capital Ratio by 2.1%, strengthen the balance sheet and provide us with resources to compete in our core markets of personal mortgages, personal lending and SME lending," PTSB CEO Eamonn Crowley said in a statement.

($1 = 0.8461 euros)

(Reporting by Conor Humphries; Editing by Kirsten Donovan)

((conor.humphries@thomsonreuters.com; +35315001518; Reuters Messaging: conor.humphries.thomsonreuters.com@reuters.net))

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