Reliance ARC buys distressed loans for Rs.273-Cr from IOB, Jana SFB

In two separate transactions, Reliance Asset Reconstruction Company has acquired stressed loan portfolios from Jana Small Finance Bank and Indian Overseas Bank. Both deals were concluded under a structured deal involving upfront payment and issuances of security receipts to the banks. In all, the Anil Ambani group ARC acquired a principal loan portfolio of INR 273 crore from the two banks under two separate uncontested Swiss challenge auction. It acquired a principal loan portfolio of INR 141 crore from Indian Overseas Bank at a reserve price of INR 84.8 crore under a structured deal of 25:75. The ARC paid 25% of the transaction value upfront and the balance will be paid in the form of security receipts. From Jana Small Finance Bank, the ARC purchased INR 132 crore loan at a reserved price of INR 98.6 crore under a 15:85 structured deal where 15% of the transaction value is paid upfront and the remaining in security receipts.