For the successful execution of the portfolio sale, the bank has appointed Morgan Stanley to run a sale process, as reported by The Financial Times.
Private equity and vulture funds that were actively engaged in purchasing distressed property loans in 2011 are likely to be drawn to bid for the portfolio sale.
In November 2010, the European Union and International Monetary Fund had provided a €67.5bn bailout funding following a banking crisis in the country.
As part of the EU-IMF program, Ireland’s three main banks AIB, Bank of Ireland, Irish Life & Permanent have to shed €70.4bn of non-core assets by 2013.
In March 2012, AIB said that it had shed €12.7bn in non-core assets in 2011 from a target of €20.5bn non-core loans.
AIB reported a loss after tax of €2.3bn last year, compared to a loss after tax of €10.2bn in 2010.
