ARCIL, Ceberus in partnership with Arcion ARC submits EoI for Yes Bank’s NPA pool

Avenue Capital backed Asset Reconstruction Company of India (Arcil) and ARCION Revitalization Pvt Ltd, an ARC backed by Apollo-ICICI Bank, have submitted expressions of interest separately for ’s Rs 48000 crore stressed loan book, said people aware of the development.

JC Flowers ARC, the anchor bidder for Yes Bank’s Rs 48000 crore portfolio, has offered Rs 11,100 crore to acquire the stressed loans.

ARCION ARC’s bid is in partnership with Cerberus Capital, a strong contender for Yes Bank’s portfolio, the people said. JC Flowers ARC and Cerberus were the only two entities that submitted binding bids for Yes Bank bad loans.

ET has sought a response from ARCIL, Cerberus and Yes Bank, which will be soon updated.

Yes Bank has invited EoI for its NPA portfolio by July 23. The EoI bidders will be given three weeks to complete the due diligence, which will be followed by a Swiss challenge auction.

As per the request for proposal (RFP), the counter offer for Yes Bank’s NPA pool must be at least 10% higher than the anchor bidder to be eligible. Hence, the counter bid must be atleast Rs 12200 crore.

JC Flowers ARC will have the first right to match the counter bid.

These loans would be sold under a 15:85 structure wherein 15% would be paid upfront, and the remaining 85% would be in the form of security receipts that would be paid as the ARC recovers money from defaulters.

Yes Bank has expressed its intent to invest Rs 350 crore in JC Flowers ARC for the 20% equity stake, a senior bank official said at a recent press conference. The bank official also indicated that they would soon acquire a 9.9% stake in the JC Flowers ARC.

The bank is also in talks with Carlyle and Advent Capital for raising USD 1 bn equity, a move that would boost its capital and help expand its loan book. ET reported last week that senior officials of Carlyle and Advent Capital are in India to finalise the structure of the deal.

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