Permanent TSB has agreed the sale of a portfolio of performing Buy-To-Let mortgages, worth about €1.2 billion, to Citibank London. 

Citibank London is the UK branch of US-based Citibank.

The deal involves the sale of a pool of about 3,700 Buy-To-Let loan accounts. 

Permanent TSB said that all the loans are on Buy-To Let properties and mainly consist of interest only repayment terms.

They have an average balance of €375,00, are classified as performing from a regulatory perspective and have an average remaining term of 10 years.  

No loan accounts that received a payment moratorium due to Covid-19 are included in the transaction, it added.

PTSB said it will continue to service the loans for a period of up to six months. At the end of this six months, legal title and loan account servicing will transfer to Pepper Finance Corporation, it added.

It added that the sale of the loans will have no impact on customers. 

"The terms and conditions of individual loan accounts are unaffected by this transaction, and will continue to apply," Permanent TSB said.

The deal will increase Permanent TSB's non-performing ratio from about 7% to about 7.7%, it added.

"This transaction will increase the bank's transitional Total Capital Ratio by 2.1%, strengthen the balance sheet and provide us with resources to compete in our core markets of personal mortgages, personal lending and SME lending," Permanent TSB's chief executive Eamonn Crowley said. 

"All applicable terms and conditions continue to apply, meaning that customers will be afforded the same consumer protections upon completion of the transfer," he stated. 

"Like Permanent TSB, Pepper is regulated by the Central Bank of Ireland and is required to comply with consumer protection legislation when dealing with customers," he added.