UKFI’s activities in relation to the management of the Wholly-Owned Investments are set out in the UKFI Framework Document - Revised October 2014 Version
and UKFI Investment Mandate - Revised October 2014 Version
The ‘Wholly Owned’ investments comprised Northern Rock plc and UK Asset Resolution Ltd (UKAR), until the sale of Northern Rock plc to Virgin Money on 1 January 2012. UKAR was formed during 2010 to integrate the activities of NRAM plc and Bradford & Bingley plc. UKFI managed the Government’s 100% shareholding in Northern Rock plc from its formation on 1 January 2010 until its sale.
Government investments as of 1 April 2014 comprise
- £14.9bn of loans in NRAM;
- £5bn of Working Capital Facility (WCF) in Bradford & Bingley plc with an additional £18.4 billion statutory debt comprising £15.7 billion owed to the Financial Services Compensation Scheme (FSCS) (via a loan from HM Treasury) and £2.7 billion owed directly to HM Treasury, reflecting the value of the retail deposits which were transferred to Abbey National plc.
17th December 2014
Intention to sell shares in Lloyds Banking Group plc through a trading plan.
UKFI today announces that it intends to sell part of Her Majesty’s Treasury’s (“HMT”) shareholding in Lloyds Banking Group plc (the “Company”) over the next six months through a pre-arranged trading plan that will be managed by Morgan Stanley & Co. International plc (“Morgan Stanley”).
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14th October 2014
UKAR sells mortgage portfolio for £2.7bn
UK Financial Investments Limited (“UKFI”) today announces that following a competitive sales process, UK Asset Resolution (“UKAR”) has agreed to sell a portfolio of mortgages for a price of approximately £2.7bn. This sale forms part of UKAR’s activity to reduce the size of the closed mortgage books of B&B and NRAM in a way that delivers value for taxpayers.
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