Transaction marks the only largest sale of NPAs in India

NEW YORK, Dec. 17, 2022 /PRNewswire/ — J.C. Flowers & Co. LLC (“J.C. Flowers” or “the Agency”), a number one non-public funding agency devoted to investing globally within the monetary companies business, introduced at present that the J.C. Flowers Asset Reconstruction Firm (the “ARC”) has accomplished the acquisition of a pool of nonperforming property (“NPAs”) with a principal steadiness of 480 billion rupee (roughly $6 billion) from YES BANK, a Mumbai, India primarily based financial institution.

The portfolio buy worth was 112 billion rupee ($1.4 billion) as of March 2022 adjusted for exercise since that date. Submit-acquisition, the ARC will act because the supervisor for the portfolio exercise to optimize recoveries, with plenty of key personnel having labored on the portfolio at YES BANK. The ARC bought a 15% vertical slice of the NPAs whereas YES BANK will retain the remainder within the type of safety receipts.

The portfolio consists of nonperforming and underperforming giant company loans with vital actual property and infrastructure property.

J.C. Flowers additionally introduced it has entered right into a strategic partnership with YES BANK by which the financial institution will buy as much as a 19.99% fairness stake within the ARC. The funding can be made in two tranches, the primary 9.9% accomplished as a part of this transaction, with the remaining funding to be accomplished topic to regulatory approval.

“This transaction, which marks the only largest non-performing asset sale ever in India, continues our agency’s custom and repute for enterprise probably the most complicated and attention-grabbing investments within the monetary companies business,” stated Chris Flowers, CEO of J.C. Flowers. “After we established our ARC we noticed sturdy alternatives in collaborating within the exercise of India’s non-performing loans, and we look ahead to working with the YES BANK staff.”

“There was a whole lot of curiosity in India from international buyers however only a few precise transactions, and we consider our partnership with the J.C. Flowers ARC can function a mannequin for different Indian monetary establishments to comply with,” stated Prashant Kumar, CEO of YES BANK. “The turnaround YES BANK has already achieved in a single yr has been spectacular, however by partnering with one of many world’s premier non-public buyers, we hope to rework utterly YES BANK’s steadiness sheet and restore our place as a number one Indian lender.”

This transaction generated assist from a number of key buyers within the J.C. Flowers’ funds. Among the many buyers is Lingotto, a wholly-owned subsidiary of the diversified holding firm EXOR N.V.

KPMG India acted as unique monetary advisor and Wadia Ghandy and Veritas Authorized had been the authorized advisors to J.C. Flowers on this transaction.

About YES BANK
YES BANK is a full service business financial institution offering a whole vary of merchandise, companies and expertise pushed digital choices, catering to retail and company shoppers. YES BANK operates its funding banking, service provider banking, and brokerage companies by YES Securities, an entirely owned subsidiary of the Financial institution. Headquartered in Mumbai, it has a pan-India presence together with an IBU at GIFT Metropolis, and a Consultant Workplace in Abu Dhabi. For extra data, please go to the Financial institution’s web site at http://www.yesbank.in/.

About J.C. Flowers & Co.
J.C. Flowers is a number one non-public funding agency devoted to investing globally within the monetary companies business. Based in 1998, the agency has roughly $5 billion of property beneath administration. J.C. Flowers has places of work in New York, London and Palm Seaside with an roughly 20-person funding workers who’ve a mixed 300+ years of expertise. Over its historical past, J.C. Flowers has invested greater than $17 billion of capital in 64 portfolio corporations in 18 international locations throughout a variety of business subsectors together with banking, insurance coverage and reinsurance, securities corporations, specialty finance, and companies and asset administration. For extra data, please go to www.jcfco.com.

Media Contact:
For J.C. Flowers:
Jennifer Hurson
Lambert
845-507-0571
[email protected]

SOURCE J.C. Flowers & Co.



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