LONDON (Reuters) - Britain said on Friday it had sold a portfolio of mortgages issued by failed lender Bradford & Bingley for 11.8 billion pounds ($15 billion) to insurer Prudential and buyout firm Blackstone.
Bradford & Bingley (B&B), a mortgage provider bailed out during the financial crisis, is owned by British government vehicle UK Asset Resolution (UKAR).
"The price achieved is at the upper end of expectations, delivers value for the taxpayer and compares favourably with the 'fair value' of the B&B loan book disclosed in B&B's accounts last year," a statement from UKAR said.
The sale will reduce UKAR's balance sheet to 22 billion pounds, having stood at 37 billion pounds in September 2016.
UKAR said in 2016 it would sell Bradford & Bingley's 15.65 billion pound mortgage portfolio, which also includes around 3 billion pounds in non-performing loans, in two or three transactions, as it seeks to recoup taxpayers' money.
It said it expects to launch the next phase of sales later this year.
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UKAR, which was advised by Credit Suisse, said there would be no changes to the terms and conditions of the buy-to-let loans involved in the transaction.
($1 = 0.8015 pounds)
(Reporting by Rachel Armstrong and Dasha Afanasieva; Editing by Susan Fenton and Alexander Smith)
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