The Business Times

Lloyds to sell US$500m of shipping loans

It is cutting sector exposure; BOA, US hedge fund seen as possible buyers

Published Thu, May 1, 2014 · 10:00 PM
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[LONDON] Lloyds Banking Group has reached an agreement to sell US$500 million of shipping loans from its remaining ship finance portfolio as the British bank cuts sector exposure, finance and banking sources familiar with the matter said on Wednesday.

The deal is the latest in a flurry of sales of ship finance loans, many of which are being put up for sale by banks under pressure to boost their capital to comply with new, stricter industry legislation since the financial crisis.

The banks have suffered alongside the shipping firms they lent to, as the latter endured one of their worst downturns in decades. Many firms defaulted on loans and several collapsed. As a result, banks are offloading what they see as risky assets at cheaper prices, even as trading c…

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