Paragon buys portfolio of loans from HSBC for £13.5m

SOLIHULL-based home credit and mortgages group Paragon has acquired a portfolio of non-performing personal unsecured and secured loans from HSBC Bank for £13.5m.

The deal – via its subsidiary Idem Capital – is being financed from Paragon’s cash reserves and represents the value at which the acquired assets will be taken on to the group’s balance sheet. 

The acquisition is expected to be earnings enhancing in the current financial year.

Commenting on today’s acquisition, Nigel Terrington, chief executive of Paragon, said: “This latest transaction by Idem Capital marks a successful start to the new financial year for the division. 

“Building on the group’s long-standing loan servicing expertise, Idem Capital has now firmly established itself as a leading player in the growing debt purchase market. 

“The financial strength of the group, combined with our scalable and efficient conduct-focused servicing platform, creates a competitive advantage in this attractive sector.

“Idem is well-positioned to pursue further investments in the mainstream of the UK debt purchase market.”