Permanent TSB Group Holding — Capital/Financing Update 2018

Nov 29, 2018

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 9448I

Permanent TSB Group Holdings PLC

29 November 2018

This announcement contains inside information under Article 17 of Regulation (EU) 596/2014.

29 November 2018                                                                                           

PERMANENT TSB GROUP HOLDINGS PLC

SECURITISATION OF A NON-PERFORMING LOAN PORTFOLIO

Permanent TSB plc ("PTSB"), a wholly owned subsidiary of Permanent TSB Group Holdings plc announces today that it has entered into a securitisation arrangement for a portfolio of Non-Performing Loans (NPLs), through a Special Purpose Vehicle named Glenbeigh Securities 2018-1 DAC (Glenbeigh Securities). PTSB has transferred the beneficial interest in the loans to Glenbeigh Securities that, in turn has issued notes backed by these loans. PTSB will hold 5% of the notes.

The transferred NPL portfolio will continue to be serviced by PTSB for a period of up to six months. At the end of this period, 1) Pepper Finance Corporation (Ireland) DAC trading as Pepper Asset Servicing will act as the Master Servicer on behalf of Glenbeigh Securities; and, 2) legal title to the loans will be transferred to Pepper Finance Corporation (Ireland) DAC.

The transferred NPL portfolio has a gross balance sheet value of c.€1.3 billion and a net book value of c.€0.91 billion. The NPL portfolio carries a risk weighting of c.€0.91 billion. In the year to December 2017, the portfolio generated an operating income of c.€4 million. At completion, PTSB will receive a consideration of c.€0.89 billion. The proceeds will be used for general corporate purposes.

The Glenbeigh transaction, together with Project Glas (which was announced in July) when completed, is expected to reduce the NPL ratio from c.26% at 1 January 2018 to less than 10%. The Glenbeigh transaction is expected to increase the Common Equity Tier 1 (CET 1) ratio by c.30 basis points on a transitional basis, subject to regulatory approval.

Ends

For further information, please contact:
Eamonn Crowley Chief Financial Officer eamonn.crowley@permanenttsb.ie +353 1 669 5354	Rajesh Manirajan Head of Investor Relations rajesh.manirajan@permanenttsb.ie +353 1 669 5622	Ray Gordon Gordon MRM ptsb@gordonmrm.ie +353 87 241 7373

Note on forward-looking information:

This Announcement contains forward-looking statements, which are subject to risks and uncertainties because they relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Group or the industry in which it operates, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements referred to in this paragraph speak only as at the date of this Announcement. The Group undertakes no obligation to release publicly any revision or updates to these forward-looking statements to reflect future events, circumstances, unanticipated events, new information or otherwise except as required by law or by any appropriate regulatory authority.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

STRXKLFLVFFZFBQ