International Finance Corporation (IFC) is planning to invest in the proposed India arm of US-based Encore Capital Group Inc (EPCG).
ECPG is a US-based NASDAQ listed company engaged in the business of debt management and has subsidiaries across the globe, including Europe and South America.
Proposed shareholders of Encore ARC will be ECPG (up to 50%), IFC (up to 20%), and other investors (around 30%).
The India team of ECPG is in discussions with other potential investors for the proposed project.
The World Bank's investment arm in a disclosure said that the total cost of the project is estimated to be up to Rs 495 crore ($ 82.5 million). IFC's investment in Encore ARC will be a combination of equity investment and CCDs over a period of three to four years. The breakup between equity and CCDs shall be in the ratio of 40:60.
The proposed arm will support the acquisition and resolution of distressed assets (DAs), largely retail and MSME NPAs in India.
Encore ARC will be headquartered in Gurgaon, Haryana, India.
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