DARP - EOS

completed

The proposed investment with KG EOS Holding GmbH & Co (“EOS”), a leading servicer of distressed assets (DA), is to co-invest and risk share in the purchase of DA portfolios in Europe and Central Asia. Russia has been identified as a priority market and will be the initial focus. The Project is part of IFC’s Debt and Asset Recovery Program (“DARP”), an integrated three-year investment program undertaken by IFC’s real and financial sector departments which aims to address the increasing levels of debt burden, debt roll-over risk, restructuring needs, and distressed assets in emerging economies. Rationale: The share of non-performing loans (NPLs) to total loans has increased markedly in Emerging Europe since the beginning of 2008, particularly in Russia. EOS and IFC both believe that distressed asset and NPL resolution can have a material developmental impact on the private sector and provide a unique value proposition at multiple levels, while providing a satisfactory return for their stakeholders.