Nicosia: The troubled Bank of Cyprus, the largest lender on the recession-hit island, said Monday it has sold its UK loan portfolio for 361 million euros ($451 million) as part of its restructuring.
The loan portfolio -- largely composed of residential and commercial real estate-backed facilities - was sold to Mars Capital Finance and Camael Mortgages, said BoC.
"Sale of the loan portfolio is in line with the Group`s restructuring plan and is part of the Group`s strategy of deleveraging through the disposal of non-core operations... and strengthening its capital and liquidity position," it said in a statement.
The portfolio is not linked to the group`s wholly-owned subsidiary, Bank of Cyprus UK, but part of a wider UK portfolio transferred after BoC absorbed Laiki Bank under a 2013 bailout/bail-in.
In return for 10 billion euros in aid from international lenders, Cyprus in March 2013 agreed to wind down its second largest bank, Laiki, and impose losses on depositors in under-capitalised BoC.
Depositors in Bank of Cyprus were hit with a 47.5 percent "bail-in" as part of the bailout package.
BoC is now trying to claw back money it lost during a period of rapid expansion and has sold off its Romanian assets for 95 million euros.
In July, BoC successfully completed a one-billion-euro private capital issue which attracted big-hitting foreign investors.