Pepper Finance Corporation will be managing the loans as legal title holder.
Pepper is regulated by the Central Bank and so customers will continue to have the same legal and regulatory protections after the sale. The bank said last April that it was exploring options to divest its remaining non-performing mortgage loan portfolio and had entered talks with Bank of Ireland about the sale of the majority of its Irish business.
The Belgian bank first entered the Irish market in 1978 through the majority acquisition of Irish Intercontinental Bank and has 1,246 employees across its 12 hubs around the country. KBC had €10 billion worth of loans, €5 billion in deposits and a 12.6% share of the mortgage market at the end of 2020. Its impaired loans stood at €1.4 billion or 14% of its total loan book.