RBS sell-off continues
(14 September 2015 – China) The Royal Bank of Scotland (RBS) is planning to sell its China-based corporate loan portfolio according to reports.
Potential buyers for the portfolio include China Construction Bank Corporation, Hong Kong Branch, and the CCB.
As of July 31, 2015, the concerned loan portfolio comprised £594 million (A$1.29 billion) in loan commitments with drawn assets of £494 million.
RBS expects the sale to generate proceeds of £498 million with an estimated profit of £4 million. All proceeds from the sale will be used for meeting general corporate needs.
The transaction is subject to consent from the Bank’s clients. The taxpayer-owned bank expects the sale to be “substantially completed” by Q4 2015.
In February 2015, the company announced plans to exit its international investment banking business in 25 countries across the worlds as a result of aggressive restructuring and plans to fully privatise.
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