Paragon takes on more loans from RBS
MORTGAGE and credit group Paragon has acquired its second batch of unsecured consumer loans from The Royal Bank of Scotland.
The deal follows on from the initial agreement with RBS in October, which involved the acquisition of a portfolio worth £43.2m.
The Solihull-based group said the latest deal, the eighth to be secured through its Idem Capital Securities subsidiary, was for an altogether more modest £0.2m.
The deal is being financed from Paragon’s cash reserves and represents the value at which the acquired loans will be taken on to the group’s balance sheet.
In a statement to the London Stock Exchange, Paragon said: “The investment is expected to be earnings enhancing in the current financial year. It is anticipated that there will be opportunities to make further modest acquisitions under the agreement and these will be announced as they occur.”
Last month Paragon announced it had acquired a portfolio of closed UK consumer credit card receivables from MBNA Europe Bank Ltd in a transaction worth almost £56m.
