IFC provides financial support to help restore bad asset values in Vietnam, the Philippines, Indonesia and Thailand
04/01/2019 11:00 GMT+7 23
IFC invests in Altus Corporation to provide financial support to restore the bad assets of struggling companies in the Philippines, Thailand, Indonesia, and Vietnam.
IFC, a member of the World Bank Group (World Bank) and IFC's Financial Institutions Development Fund and IFC's Emerging Asia Fund, two funds managed by IFC Asset Management Company (AMC) , will invest $ 65 million in the Altus Special Situations Asia 1 LP.
The investment will be used to finance companies in emerging markets in East Asia that are struggling to help these companies fulfill their financial obligations, regain credibility. Employing and maintaining employment for employees.
Although the region is experiencing strong economic growth, companies in the region still face a number of challenges. In some markets, after the global economic crisis, bad debts among companies use high financial leverage, and the bad debt bubble has blocked the capital flow of banks. As a result, companies with financial difficulties cannot access credit sources to revive and re-establish operations.
IFC has worked with partners to build regional platforms and facilitate institutional investors to invest in classified assets as bad assets.
This IFC investment will help Altus develop a regional financial assistance program to invest in the Philippines, Thailand, Indonesia, and Vietnam. Among them, Indonesia and Vietnam are still young markets for value restoration activities for bad assets.
Mr. Vivek Pathak, IFC Director of East Asia and Pacific Region commented: “IFC's support will certainly promote the process of forming a wider market for handling bad assets through construction. build a regional foundation. This will be a platform to help mobilize regional and international capital, which is necessary to revive companies that are in financial difficulties. ”
Mr. Pathak also added, "As a result, these companies can make long-term and sustainable development plans, contributing to increased job opportunities, boosting economic growth in the region."
The Altus Special Situations Asia 1 LP will have up to US $ 272.5 million in working capital that can be used to implement investment activities. IFC, IFC's Financial Institutions Development Fund and IFC's Emerging Asia Fund will contribute capital of 15 million USD, 25 million USD and 25 million USD respectively. Altus Capital will contribute US $ 7.5 million.
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