AZB & Partners lead IFC in acquiring securities in J.C. Flowers India Opportunities Fund
AZB & Partners lead IFC in acquiring securities in J.C. Flowers India Opportunities Fund IFC, a member of the World Bank Group, has partnered with J.C. Flowers & Co. to help financial institutions in India resolve distressed assets, an initiative that will free up capital for new lending and allow mid-sized Indian firms to preserve jobs and avoid insolvency. Under the project,...
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AZB & Partners lead IFC in acquiring securities in J.C. Flowers India Opportunities Fund
IFC, a member of the World Bank Group, has partnered with J.C. Flowers & Co. to help financial institutions in India resolve distressed assets, an initiative that will free up capital for new lending and allow mid-sized Indian firms to preserve jobs and avoid insolvency.
Under the project, an expansion of IFC's Distressed Asset Recovery Program's (DARP) work in India, IFC will acquire securities up to USD 100 million in the J.C. Flowers India Opportunities Fund subject to certain conditions, with an initial commitment of $40 million. The Fund is a partnership with Eight Capital Management, an Indian distressed assets investment firm.
J.C. Flowers & Co. is a private investment firm dedicated to investing globally in the financial services industry.
The new partnership will create the first dedicated platform in India for mid-sized distressed assets, which account for $27 billion—more than a third—of the country's corporate stressed assets.
In addition to its investment, IFC will support J.C. Flowers and Eight Capital in the adoption of environmental and social standards in line with the IFC Performance Standards.
In a Press Release by IFC, Alfonso Garcia Mora, IFC Vice President for Asia and Pacific said, "Across the globe, the COVID-19 pandemic has dealt a blow to companies' ability to repay their debts, and increased already soaring pre-crisis corporate debt levels. By helping create a functioning market for distressed assets, this initiative will let viable Indian firms return more quickly to productivity, limit the movement of solvent firms into bankruptcy, and allow banks to return to their core lending business in support of medium and small enterprises. Together with our partners, IFC remains committed to supporting India's efforts to restore economic growth and stabilize the financial system."
The team from AZB & Partners comprised of Ashwath Rau and Pallabi Ghosal (Partners) and Ananya Sonthalia (Senior Associate).
