Sale of Heidelberger Leben
Lloyds Banking Group plc ("the Group") announces that it has signed an agreement to sell its German life insurance business Heidelberger Lebensversicherung AG ("Heidelberger Leben" or "the business") to a joint venture company owned by Cinven Partners LLP and Hannover Rück SE ("the buyer"), for a cash consideration of around €300 million, or approximately £250 million at current exchange rates.
Sale of Portfolio of Leveraged Loans
Lloyds Banking Group plc ("the Group") announces today that it has agreed the sale of a portfolio of leveraged loans ("the Portfolio") to ELQ Investors II Limited, a wholly owned subsidiary of Goldman Sachs Group, Inc., for a cash consideration of £254 million, with a further £2 million payable within 6 months if certain financial conditions are met. The transaction is part of the Group's continued non-core asset reduction strategy.
The Portfolio, which has gross assets of £283 million, predominantly comprises UK based assets in a range of sectors including manufacturing and retail. The Portfolio generated profits of £11 million in the year to 31 December 2012.
The transaction will result in a small core tier 1 increase for the Group. The sale proceeds will be used for general corporate purposes.
The transaction is expected to complete by the end of September 2013.