GE Commercial Finance Real Estate - Press Release

Resona Bank Ltd. said it will sell loans valued at about 100 billion yen ($906.5 million) extended to Alte Co. to GE Real Estate, thereby making Alte a group company of GE. Resona Bank, the core entity of Resona Holdings Inc., plans to close the deal with the Japanese unit of General Electric Co. March 30.

The move comes as the bank carries out a thorough review of its ties with borrowers. Resona has undergone aggressive groupwide restructuring since receiving a government bailout of 1.96 trillion yen in July. To concentrate on core operations, Resona has pledged to cut the number of group subsidiaries and affiliates.

Alte, a real-estate company based in Osaka, is one of those nongroup affiliate companies that still has historically close ties with Resona. After the transaction, however, Alte will become a group company of GE, Resona said.

Resona said it has set aside loss reserves for the Alte loans, and the move won't entail any change in Resona Holdings' earnings outlook for the fiscal year ending March 31.

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