The company’s latest move comes as it plans to slim down its corporate and institutional banking business in the Middle East, Africa, parts of Europe and Asia and aims to refocus on its home market.
CDB said that the portfolio was sold to large UAE-based companies with good credit profiles mostly and the purchase fitted well into its strategy to develop its corporate as well as commercial banking platform.
According to RBS spokeswoman, the disposal is part of the bank’s plan which was announced earlier to exit its corporate debt and debt capital markets business in the region.
CBD CEO Peter Baltussen said: "The acquisition is another major step forward in our strategy? of pursuing sustainable growth in this sector.
"We have made strategic investments in growing our corporate and commercial banking propositionin terms of product expertise, client coverage, client service, revenue addition and profitability."
The loan transfer is slated for completion during April 2015 and CBD plans to fund the transaction with its own funds.
RBS, which is already in the process of shrinking its business in the UAE, divested its retail business in the country to Abu Dhabi Commercial Bank in 2010.
In 2014, the bank’s credit exposure to Central and Eastern Europe, the Middle East, Central Asia and Africa as well as the World Bank stood at £16.6bn, Reuters reported.
The company’s annual report states it represents 4.3% of its £381.3bn of credit risk assets.
RBS is a retail banking subsidiary of The Royal Bank of Scotland Group and together with NatWest and Ulster Bank, provides banking facilities throughout the UK and Ireland. It has around 700 branches, mainly in Scotland.
Image: The Royal Bank of Scotland head office in Istanbul. Photo: courtesy of Reise Reise
