SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

UK-based lender Natwest is set to receive €5.4bn ($5.7bn) from Allied Irish Banks (AIB) for the acquisition of the former’s Irish mortgage business. With this deal, Natwest will move towards completing its exit from Ireland. A little over a year ago, Natwest announced that it will wind down its Irish Ulster Bank unit and had binding agreements in place for 90% of a total loan book at about €20bn ($21.3bn). AIB expects that its deal will generate an annual income of around €90mn ($95.8mn), a 30bps average servicing cost, and a reduction in CET1 by 70bps which stood at 16.6% as of March 2022 vs. its medium-term target of 13.5%. AIB has also taken €3.7bn ($3.9bn) of commercial loans from Ulster Bank. Permanent TSB, which acquired €7.6bn of assets from Ulster Bank last year, paid €6.4bn ($6.8bn) and gave NatWest a 16.66% share in the bank in exchange for Ulster’s non-tracker mortgage and micro-SME lending books and its asset finance business.. 

Natwest’s dollar bonds were trading lower, its 5.125% perp was down over 0.31 points to 91.64 yielding 7.15%.

For the full story, click here

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