ORIX Corporation acquisition of RBS shipping loan portfolio

Overview:

• ORIX Corporation has acquired a shipping loan portfolio from the Royal Bank of Scotland (RBS).
• The $290 million portfolio is part of a wider $600 million sell off.
• According to Reuters most of the loans are not of investment grade and made to Greek borrowers.
• The bank has also sold other loans to the German Berenberg Bank as part of the wider sell off.
• The bank had originally held discussions with both buyers about the sale of its entire Greek shipping loan business, valued at around $3 billion, but talks did not progress. That process in itself is part of the bank's global strategy to wind down its shipping finance business.
• The news comes in the context of RBS's latest financial results which show a loss of £7 billion in 2016.

Sam Duke - Editor