As part of the Group's streamlining, SEB has decided to phase out operations that involve the post wright-off debt collection within the Retail organisation. Although SEB is the first major Swedish bank to conclude such a transaction, similar agreements have already been noted in the US bank market.
The price level for the type of loans concerned has risen during recent years, due to Sweden's improved economic climate. Accordingly, SEB has concluded that this is the right time to sell this loan stock. The purchaser is Hoist Kredit AB.
The sale consists of approximately 28,000 loans and capital receivables corresponding to SEK 2.2 billion. The effective date of the purchase is March 1 and the payment date is October 1, 2000.
The transaction will generate a capital gain of about SEK 300 M for SEB.