Serco and Pepper appointed preferred bidder to support portfolio of Irish mortgage loans

National Asset Management Agency (NAMA) in Ireland have today confirmed that the consortium of Serco, the international services company, and Pepper Asset Servicing (Pepper), a leading asset manager and advisory company, has been selected as preferred bidder to provide primary1 and special servicing2 on a portfolio of approximately 28,000 residential mortgages. The contract will involve the management of the loans as well as day to day customer services and specialised case management.

The portfolio, which NAMA may acquire from the Special Liquidators to Irish Bank Resolution Corporation (IBRC), could comprise approximately 28,000 residential mortgages with a potential aggregate nominal par debt value of ?1.8 billion. These are loans that will be unsold after completion of the Special Liquidators' current loan valuation and sales process.

If the acquisition of the residential portfolio by NAMA proceeds and contractual terms are agreed, the new five-year contract will represent a significant move into the Irish banking and financial services market for Serco's global Business Process Outsourcing (BPO) business, and would also represent Pepper's largest residential special servicing contract in Ireland since acquiring the former GE Money business in September 2012.

The contract is expected to start early in 2014, and will result in the expansion in Ireland of both Serco and Pepper's operations in Dublin and Shannon, as well as protecting the jobs of the IBRC workforce currently servicing this portfolio.

Pepper and Serco will be responsible for delivering on NAMA's objectives to maximise the performance of the portfolio by managing risk, ensuring best-in-class service delivery, and meeting all regulatory, compliance and reporting requirements.

Paul Doddrell, Pepper's CEO in Ireland, said: "The NAMA appointment is an acknowledgement of Pepper's expertise and experience in servicing third party portfolios, underpinned by our strong track record of improving the performance of assets under our management. It is also another important milestone in the growth of Pepper's Irish platform, and our stated desire to create new, sustainable job opportunities in both Shannon and Dublin where our operations are principally based."

Jerry Benson, Managing Director for Serco's Private Sector BPO business in Europe added, "This is a significant step for Serco and further demonstrates our strength and capability in the banking and financial services market. Working in partnership with Pepper, we will be providing transformative BPO solutions for our clients in an exciting new market for Serco."

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