India Inc India Inc: Friday, 11 May 2018 06:42

IFC plans to invest $50mn in Encore ARC

International Finance Corporation (IFC) plans to invest up to Rs 325 crore (around $50 million) in Gurugram-based Encore Asset Reconstruction Company Pvt. Ltd through a combination of security receipts and non-convertible debentures.

IFC proposes to invest Rs 195 crore ($29 million) in security receipts issued by one or more trusts set up by Encore ARC and Rs 130 crore (around $19.5 million) via debentures, the private-sector investment arm of the World Bank said in a disclosure.

The proceeds will be used towards acquisition and resolution of distressed assets in the retail and micro, small, and medium enterprises segment in India.

IFC’s investment is part of a larger round in which Encore ARC is looking to raise up to Rs 591.5 crore ($88.28 million) via security receipts and NCDs.

Nasdaq-listed Encore Capital Group Inc. is the holding company of Encore ARC. It holds a 50 per cent stake in the India unit. Asia-focussed private equity firm ADV Partners holds a 30 per cent stake while IFC owns the remaining 20 per cent.

The proposal will be placed before IFC’s board for approval on 8 June.

India Investment Journal’ has in-depth coverage on related topics.

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