Royal Bank of Scotland Group Plc (RBS, RBS.L) Thursday said it has entered into a definitive agreement with China Construction Bank Corp., Hong Kong Branch or CCB, for the sale of a portfolio of corporate loan commitments related to its banking business in China, booked offshore.
The cash consideration is expected to be approximately 498 million pounds, generating a profit on disposal of around 4 million pounds. Final cash consideration and profit will depend upon settlement date portfolio balances.
The completion of the transaction is subject to client consents. The sale proceeds will be used for general corporate purposes.
The portfolio sold to CCB comprises 594 million pounds of loan commitments with drawn assets of 494 million pounds as of 31 July 2015 equivalent to risk weighted assets of approximately 237 million pounds as of that date. The portfolio generated a profit after tax of 2 million pounds in the year 2014.
The transaction is expected to be substantially completed during the fourth quarter. The deal continues the strategic direction RBS announced in February for its Corporate & Institutional Banking business, which will focus mainly on UK and Western European customers, built on existing product and service strengths.
In London, RBS shares were trading at 329.90 pence, down 0.42 percent.