French banking giant Societe Generale is selling a portion of its shipping loan portfolio to Citigroup (NYSE:C).
Reuters reported Friday that the two banks have reached a deal in which Citi would acquire certain loans made to shipping firms for an undisclosed sum. Societe Generale said earlier this year that it was looking to reduce its financing to shipping companies, according to news reports.
It is not known when the deal would close but Citi said in a statement to Reuters that the companies "are committed to working in a coordinated manner in order to make the transition as timely and efficient as possible for the borrowers."
Societe Generale is one of several European banks looking to sell shipping-related assets in an effort to bolster capital levels and focus on core banking activities. Other that have put shipping loans on the block include BNP Paribas, Royal Bank of Scotland and Lloyds Banking Group.