When it comes to the sale of Bord Gais Energy, the State has created a special organization called NewERA which is slotted into the NTMA structure, and the sale will be a prolonged affair with a prospectus to be issued in April 2013, there will be rigorous examination of bids, there will be intense media scrutiny, there might even be questions and debate in the tarnished Dail, before a sale will ultimately be concluded and the State will see gross proceeds of about €1,000m.
This week, 99.8% state-owned Allied Irish Banks sold €400m of assets – loans secured on property in Spain – and there wasn’t even a mention of it in the Irish media or at least an online search in the past seven days of the Irish Times, Irish Independent, Irish Examiner and RTE reveals nothing. There’s not even a statement on the AIB website.
The British commercial property portal CoStar reports that the loans are understood to have made 80c in the euro and AIB will walk away with €320m. The buyers are not explicitly named but are reported to be a group of hedge funds. The loans are ultimately secured on 1,186 branches of Banco Santander in Spain.
There is a burgeoning loan sales industry in Ireland right now and with KPMG appointed Special Liquidator to Irish Bank Resolution Corporation this week, there is the prospect of many billions of loans coming onto the market in coming weeks. Here is a selection of recent loan sales deals.