DARP Fortress

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The project entails an investment in equity and debt, along with and affiliate of Fortress Investment Group LLC (“Fortress”) to establish a regional Non Performing Loan (“NPL”) platform for the acquisition and resolution of Distressed Assets (“DAs”) in East Asia. A to-be-formed Special Purpose Vehicle (“SPV”) will acquire DAs disposed by banks and other financial institutions. The DAs will mainly consist of sub/non-performing portfolios of assets and sub/non-performing single assets, including real estate-related performing, sub/non-performing loans, securities, assets and similar instruments, and distressed assets deriving from special situations opportunities. The SPV will also target equity interests in strategic distressed assets servicers.The Project is expected to deliver significant development value by directly strengthening the balance sheet of banks, allowing them to further extend credit to under-served market segments, and improving the risk management, transparency and governance of banks’ DAs recovery programs. The proposed project is part of IFC’s Debt and Asset Recovery Program (“DARP”), a crisis response initiative approved by the Board in August 2009, which focuses on DAs, roll-over risk and restructurings. DARP’s strategy is to revitalize financial systems through investments in DAs and servicing companies / platforms.