JC Flowers ARC, the anchor bidder for Yes Bank’s portfolio of Rs 48,000 crore, has made an offer of Rs 11,100 crore to secure a stressed loan.
ARCION is in partnership with ARC’s bid Cerberus CapitalA strong contender for Yes Bank’s portfolio, people said. Jesse Flowers ARC and Cerberus There were only two entities that submitted binding bids for Yes Bank’s bad loans.
ET seeks response from ARCIL, Cerberus and Yes BankWhich will be updated soon.
Yes Bank invites EOI For your NPA portfolio by July 23. The EoI bidders will be given three weeks to complete due diligence, which will be followed by the Swiss Challenge auction.
According to the Request for Proposal (RFP), the counter offer to the NPA pool of Yes Bank must be at least 10% higher than that of the anchor bidder to be eligible. Therefore, the counter bid should be at least Rs 12200 crore.
JC Flowers ARC will have the first right to match the counter bids.
These loans will be sold under a 15:85 structure, with 15% being paid upfront, and the remaining 85% in the form of security receipts, which will be paid by the ARC as money recoveries from defaulters.
A senior bank official said in a recent press conference that Yes Bank has expressed its intention to invest Rs 350 crore for a 20% equity stake in JC Flowers ARC. The bank official also indicated that they will soon acquire a 9.9% stake in JC Flowers ARC.
The bank is also in talks with Carlyle and Advent Capital to raise equity of USD 1 billion, a move that will boost its capital and help expand its loan book. ET reported last week that senior executives from Carlyle and Advent Capital are in India to finalize the deal structure.