The proposed JV will independently evaluate and invest in various stressed assets, and will rely upon Brookfield’s operational expertise to manage recapitalized businesses.
State Bank of India (SBI), India’s largest lender, as a part of its ongoing stress asset resolution process, has signed a Memorandum of Understanding (MoU) with Brookfield Asset Management Inc to collaborate on investments in stressed assets.
SBI and Brookfield propose to form a joint venture (JV), whereby Brookfield will commit approximately Rs 7000 crore and SBI up to 5% of total investments into stressed assets. The proposed JV will independently evaluate and invest in various stressed assets, and will rely upon Brookfield’s operational expertise to manage recapitalized businesses. The proposed JV may, at a later stage, seek participation from other lenders in the identified assets.
SBI Chairman, Arundhati Bhattacharya, expressed optimism that this approach of collaborating with global players will enable the banks in general and SBI, in particular, to find alternate solution for resolution of stressed assets. She opined that such approach will be more acceptable to both the lenders and the borrowers in cases where the promoters are not able to infuse funds and lenders are reluctant to take additional exposure.
Anuj Ranjan, Head of Brookfield India, said, “We’re very excited about this partnership with the State Bank of India. This is a great opportunity for us to continue to invest in the long-term India story, and we’re pleased to be further expanding our private equity platform here.”
SBI and Brookfield propose to form a joint venture (JV), whereby Brookfield will commit approximately Rs 7000 crore and SBI up to 5% of total investments into stressed assets. The proposed JV will independently evaluate and invest in various stressed assets, and will rely upon Brookfield’s operational expertise to manage recapitalized businesses. The proposed JV may, at a later stage, seek participation from other lenders in the identified assets.
SBI Chairman, Arundhati Bhattacharya, expressed optimism that this approach of collaborating with global players will enable the banks in general and SBI, in particular, to find alternate solution for resolution of stressed assets. She opined that such approach will be more acceptable to both the lenders and the borrowers in cases where the promoters are not able to infuse funds and lenders are reluctant to take additional exposure.
Anuj Ranjan, Head of Brookfield India, said, “We’re very excited about this partnership with the State Bank of India. This is a great opportunity for us to continue to invest in the long-term India story, and we’re pleased to be further expanding our private equity platform here.”
No comments:
Post a Comment