Alantra advises AIB UK on the sale of its ~£600m GB SME portfolio to Allica Bank

Nov 2021

Sell-side advisory

Value £600 million

London – Alantra, the global investment banking and asset management specialist, is pleased to announce that it has advised AIB UK (“AIB”) on the sale of its almost £600m performing small and medium enterprise (“SME”) loan portfolio in Great Britain (“GB”) to Allica Bank Limited (“Allica” or “the Bank”), alongside the transfer of some liabilities.

Subject to approvals, migration will be on a phased basis, with the process expected to commence in 2021 and complete over 2022.

AIB is a financial services group operating predominantly in Ireland and the United Kingdom. They provide a range of services to retail, business and corporate customers, with market-leading positions in key segments.

Allica Bank, is a UK fintech challenger bank focused on the SME sector in Great Britain. The acquisition of AIB’s GB SME business portfolio represents the Bank’s first major acquisition. With it, Allica will accelerate the growth of its SME lending, pursuing its ambition to become the leading SME challenger bank for the decade ahead. 

This transaction is part of AIB’s Strategic Transformation Programme to exit the GB SME sector, focusing on the growth of its Corporate Banking business to companies in the renewables, infrastructure, real estate, healthcare and manufacturing sectors. The sale of the portfolio will also enable AIB to reduce its staff numbers and property footprint and assist it in achieving almost €35m cost savings.

“We’re delighted to have assisted AIB in finding a solution to the complex exit of their GB SME business in Allica. This transaction strengthens Alantra’s position as a trusted advisor of Banks on the sale of loan portfolios,” commented Chris Aspden, Director at Alantra.