In the largest deal in the secondary market for sticky assets, Asset Reconstruction Company (Arcil) has disposed of Rs 3,925 crore of securitised bad loans portfolio to Germany?s Deutsche Bank.
The sell-down transaction from the company attracted bids from both domestic and international distressed debt investors.
?These bad loans (non-performing loans) portfolio is from a mix of industries, such as retail, textile, steel, cement and fertilisers,? said a top Arcil official, who did not wish to be named. However, he did not reveal the winning bid amount.
Arcil had engaged an independent advisor for the successful deal closure. While this is the largest significant secondary market sale transaction of bad loans in India, the asset reconstruction company has managed to acquire assets from different banks like ICICI Bank, SBI, Bank of Baroda, Centurion Bank of Punjab and Punjab National Bank.
?There are about 38-40 banks which had generated these bad loan potrtfolio. We have bundled up all the bad loans sold to us by banks over the past three-four years, done value addition and re-structuring to the package and finally sold to the foreign bank,? said the official.
Arcil is the first asset reconstruction company to start business in India. It has assets worth more than Rs 34,000 crore under management.