LONDON, June 30 British debt collection company Arrow Global Group has acquired three Portuguese portfolios of loans worth a total of around 1 billion euros ($1.4 billion) for 78 million euros, the company announced on Monday.
The portfolios, acquired from international and domestic Portuguese banks, predominately include Portuguese consumer loans as well as some small and medium-sized enterprise (SME) loans. Arrow Global's Portuguese business now has a total face value of more than 2 billion euros.
Banks are increasingly selling assets and improving the quality of their balance sheets in light of capital constraints and an asset quality review by the European Central Bank.
In the first half of 2014, Arrow Global purchased loans totalling 1 billion pounds ($1.7 billion) of face value, for a price of 98 million pounds, putting the company ahead of an expected 115 million pounds of investment this year.
The three portfolios, included in the first-half total, were acquired with cash on balance sheet and a portion of a 55 million pound revolving credit facility, which was increased from 40 million pounds in October 2013, banking sources said.
($1 = 0.7331 Euros)
($1 = 0.5877 British Pounds) (Editing by Mark Potter)