DARP Global AGM (IFC-37035)

Regions
  • World
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 9, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Seta Holdco S.A R.L.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 500.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 462.50 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 29, 2018

Disclosed by Bank Apr 21, 2016


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Project Description

According to IFC website, the project consists of establishing a global DARP facility to buy pools of non-performing loans in several emerging markets. This facility will be funded by IFC and by one or more funds or other investment vehicles managed by affiliates of Apollo Global Management, LLC. The following are the expected development impacts:

1. Capital relief. The project will enable financial institutions to offload their NPLs, strengthening their balance sheets, freeing up capital and generating liquidity and capacity to originate new loans.
2. Market transparency. As financial intermediaries increase the sale of NPLs to private investors, the transparency of these institutions' balance sheets improves, as these assets are priced according to market conditions.
3. Access to finance. The project will facilitate the normalization of obligations of households and small and medium enterprises, preventing a large number of them from losing their assets, regaining access to formal credit, and preserving jobs.

Investment Description
  • International Finance Corporation (IFC)

Loan: USD 462.50
Equity: USD 37.50

Private Actors

Apollo is a global alternative investment management firm with a strong track record and expertise in distressed asset (“DA”) investments. Apollo was founded in 1990. As of December 31, 2015, Apollo had a team of 945 employees, including 353 investment professionals, located in 15 offices around the world, including New York, Los Angeles, Houston, Toronto, London, Frankfurt, Luxembourg, Singapore, Hong Kong and Mumbai. As of December 31, 2015, Apollo had US$170 billion in assets under management, including private equity, credit and real estate assets. Apollo was listed on NYSE in 2011 under the ticker APO.

Contact Information

Project Contact: Jamshid Ehsani
Global Head of Principal Structured Finance, Apollo Capital Management, L.P.
Office Address: 9 West 57th St., New York, NY 10019
Telephone No.: +1 (212) 822-0660
Email Address: jehsani@apollolp.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/