CISA NPLs

completed

IFC has been requested to participate in a ‘Consortium’ including affiliates of the Capital Recovery Group of AIG Global Investment Corp., Covinoc S.A. and CarVal Investors, LLC to finance the purchase of a portfolio of Non-Performing Loans (NPLs) and other Non-Performing Assets (NPAs) a majority of which were accumulated by the government of Colombia post the financial crisis of 1999. IFC would provide both debt and equity financing to a local Colombian SRL established by the Consortium.The proposed project presents IFC a unique opportunity to participate in the first NPA deal of this scale being placed to international bidders in Colombia. It also marks a turning point for the authorities as after this sale the government would have no further obligations pertaining to its intervention post financial crisis.IFC would use this investment to create a platform for itself and offer this product to its portfolio clients. The reciprocity in this arrangement would be in the Sponsors bringing with them the manuals and expertise, Covinoc providing the man power and execution capabilities and IFC providing the country coverage and possible introduction to a new client set. Furthermore IFC could assist SRL in packaging and securitizing part of the mortgage and consumer portfolio through its portfolio company CHMC.