The Paragon Group of Companies has acquired further unsecured consumer loans, through its Idem Capital Securities subsidiary, from The Royal Bank of Scotland under the terms of a forward flow agreement.
The consideration, which is being financed from Paragon’s cash reserves and which represents the value at which the acquired loans will be taken on to the Group’s balance sheet, is £38,000. The investment is expected to be earnings enhancing in the current financial year.
It is anticipated that there will be opportunities to make further modest acquisitions under the agreement and these will be announced as they occur.
The acquisition follows the announcement, on 27 October 2011, of the acquisition of a portfolio of loans from RBS for consideration of £43.2 million and subsequent announcements of further modest acquisitions of unsecured consumer loans from time to time under the forward flow agreement.