Direct Finance's portfolio includes thousands of private clients who took out car loans.
Union Bank of Israel (TASE: UNON) has bought a NIS 180 million loan portfolio from IDI Israel Direct Insurance Ltd. (TASE: IDI) unit Direct Finance of Direct Group (2006) Ltd. The portfolio includes thousands of private clients who took out car loans.
Union Bank and IDI signed the framework agreement, which will come into effect on March 15, and which will last for 18 months or until all the NIS 180 million shekels is used, whichever comes first. The credit portfolio will be transferred to the bank in stages, which the parties have not yet determined.
Union Bank, Israel's sixth largest bank, said that the deal was part of its policy to expand its retail business. The bank's share fell 0.6% today to NIS 19.59, giving a market cap of NIS 1.45 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2010
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