Arrow Global pays £62m for €1bn of Portugese debt

LISTED debt purchaser Arrow Global has acquired three portfolio of loans worth €1bn (£800m from a number of Portugese banks for £62.4m.

Manchester-based Arrow said with this deal it had acquired a total of £1bn worth of debt for £98m. The company will now use its advanced software and data analytics systems to trace those owing the funds, and achieve a better recovery rate than the lenders would themselves.

Arrow said the three portfolio purchases represent a significant expansion of its existing Portuguese business which now has a total face value of more than €2bn (£1.6bn).

The latest deals have come from both international and domestic Portuguese banks and have come from both existing and new Arrow Global clients. 

Chief executive Tom Drury, said: “”We are delighted to announce these strategically important purchases, which strengthen our leading position in Portugal and reinforce our European growth strategy. Importantly, they demonstrate the strength of our brand in European markets, something which is key to our continued growth.

“Although two of these portfolio purchases were initially expected in Q3, we have been able to complete them in Q2 and at a larger size. As a result, we now expect our full year purchases to be ahead of our previous expectations, laying a strong foundation for earnings growth in future years.”