State-owned bank AIB has agreed to sell non-performing loans to the value of €850 million to US fund Cerberus.
The loans, which relate to 2,800 assets held by 1,000 customers, were sold at a discount of 21%.
The portfolio consists largely of investment properties, buy-to-let properties, commercial real estate and land and development.
Some owner-occupier mortgages and agricultural loans may be included in the sale, for instance in cases where private assets were used as security against an investment loan.
The average debt among the borrowers is €900,000 and around three out of four loans were not performing for over two years, with 50% not performing for over five years.
The loans were bought by Everyday Finance, an affiliate of Cerberus Capital Management, one of the biggest purchasers of Irish distressed debt since the crash.
Everyday Finance is part of London-based Link Financial Group which is the largest credit servicing firm in Ireland.
Link, who entered the credit servicing market in 2017 when it bought Capita Asset Services for £909m, also manages loans of behalf of Nama.
AIB is set to receive €700m from the sale.