Mumbai: Asset Reconstruction Company (India) Limited (Arcil) has sold security receipts (SRs) consisting of non performing loans portfolio of Rs3,925 crore to Deutsche Bank through a process of sell-down. This is the largest significant secondary market sale transaction of SRs in India.
The sell-down transaction was initiated and concluded by Arcil and attracted bids from both domestic and international distressed debt investors. The data room process, transparency and best practices customary for transaction of this nature followed with the involvement of an independent advisor enabled successful deal closure.
The first asset reconstruction company to commence business in India, ARCIL has been sponsored by State Bank of India, ICICI Bank Ltd., Industrial Development Bank of India Ltd. and Punjab National Bank. As on date assets under management at Arcil exceed USD 8.58 billion (INR 34,000 crore).