Royal Bank of Scotland Close to Selling $600 Million Shipping Loans


According to Reuters, the Royal Bank of Scotland are looking to offload a section of their shipping portfolio. Intended purchasers mentioned are Germany’s Berenberg Bank, Bank of America and Japanese Orix Corp.

Royal Bank of Scotland, which is 70% state owned, has made no secret of its intentions to leave the shipping market after 8 years of losses and an infamous bail out from the UK government in 2008. A source told Reuters that “Discreet sales talks have been going on for a while”.

One of the sources claimed that the loans, which primarily come from Royal Bank of Scotland's Greek shipping business which was valued earlier this year at $3 billion, are being sold in various parcels.

Royal Bank of Scotland’s share price has fallen into the red in London this morning, having shed 0.57% to 227.10p as of 08:38 GMT. The stock is underperforming the broader market, with the benchmark FTSE 100 index currently 0.15% worse off at 7,031.15 points. The group’s shares have lost nearly a quarter of their value this year, as compared with a 12.6-% rise in the Footsie.

At the end of September, Royal Bank of Scotland’s shipping exposure was totalled at USD $6.8 billion.

Earlier this year, more banks including The Bank of Ireland announced plans to leave the shipping industry.

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