Citizen loan purchase marks Texas entry

HOUSTON – Citizens Financial Group Inc. has expanded into the Texas market with last week’s purchase of $400 million in reserve-based loans from its parent The Royal Bank of Scotland.
The step includes the formation of a new national oil and gas finance team, which will be headquartered in Houston, Texas. Citizens Bank, headquartered in Providence, is carving out a place in the oil and gas business.
David Slye, director of the new energy finance group at Citizens, told Houston Business Journal that the bank’s presence could be bolstered in the future.
“It’s the first material presence in Houston and we certainly have aspirations to grow here, both in terms of adding resources and adding customers, not only in the reserve based lending market but really cross the oil and gas spectrum,” Slye said.
Slye will head a six-member team of bankers and with the possibility of hearing more down the line, according to HBJ.
RBS last month said investors were willing to pay $3.21 billion in a public offering for a 25 percent stake in Citizens. The United Kingdom parent ownership of Citizens is declining to 45.3 percent from 70.3 percent. It must sell all of its shares by the end of next year to meet a European Commission deadline.

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