Lloyds's Australian Subsidiary To Sell $684 Mln Loan Portfolio

(RTTNews) - In a move to wind-down Australian property portfolio and debt, Lloyds Banking Group Plc's (LLOY.L, LYG) subsidiary BOS International is planning to sell corporate loans and property worth around A$750 million or $684 million, reports said. The proposed sale will help the bank to get rid of the debt inherited through acquisition of HBOS in 2009.

The sale will be managed by Goldman Sachs Group and expression of interest is due July 19.

Earlier at the end of 2011, Lloyds has disposed property loans worth A$1.7 billion to Morgan Stanley Real Estate Fund and a consortium lead by Goldman Sachs Group and Brookfield Asset management. After a few months, Blackstone Group, together with Morgan Stanely acquired A$1.8 billion of loan portfolio from Lloyds.

The bank was looking for a two-year extension of sale of its 631 branches, a condition for the bail out. It has requested the European Commission for the extension up to 2015.

By the end of May, the bank has announced an agreement to sell U.S. Real estate portfolio for about $5 billion.

LLOY.L closed Thursday at 64.85 pence, up 2.34 percent.