Collectius is Pioneering Into Indonesia With a 300 Million USD Non-Performing Loan (NPLs) Portfolio Transaction

​​​​​​​Collectius is pioneering debt purchase in Indonesia and signs its first non-performing loan portfolio (NPLs) in Indonesia. The deal consists of a 300 million USD portfolio and the transaction includes a one-off deal plus a five-year forward flow. The deal further strengthens Collectius' position as the preferred and trusted partner of leading banks and financial institutions in South East Asia when it comes to their handling of non-performing loans (NPLs).

On Aug. 14, Collectius CEO Gustav Eriksson was quoted on the Bloomberg terminal in a story: "Collectius Buys $300m of Bad Loans in First Indonesian Deal by David Yong." And it was written that this is the first purchase of a bad loan portfolio Collectius is making in Indonesia as banks seek to free up capital for new lending in Southeast Asia’s biggest economy. According to the Bloomberg terminal story, the seller is a multinational bank selling a one-off NPL portfolio of 3.2t rupiah face value and another deal of 1.2t principal debt on a forward flow basis. Eriksson further told Bloomberg that they are looking for IRRs of 15-20 percent from the NPL portfolios across ASEAN in general and that the rate depends on the risks associated with each market.

Indonesia’s banking system gross NPL ratio was 2.79 percent in May, according to central bank data; it has risen from a two-year low of 2.59 percent in December and loan growth was 10.23 percent in 2Q18, the fastest since 3Q15. Collectius recently also added $100 million face value of NPLs in the Philippines in July and acquired its first portfolio in Thailand in January from Thai Military Bank, Eriksson says to Bloomberg in an earlier story: "Firm Backed by Swedish Money Eyes Distressed Loans in Asean."

Collectius is bringing capital, employment opportunities, know-how and systems in debt purchasing and handling of consumer non-performing-loans (NPLs) using the collection approach of care and counselling to help its debtors to become debt-free. The company has reached over 1.2 million customers and is every day trying to help its debtors to become debt-free.

“We are really excited to commence our work in Indonesia and implement our Collectius way of collection based on helping debtors become debt-free,” says Gustav A. Eriksson, CEO of Collectius Group.

“We are hungry to grow and the funds are ready to support banks and financial institutions further in Indonesia with attractive prices,” says Ivar Bjorklund, head of portfolio acquisition at Collectius Group.

Collectius Group: 

Collectius Group is a multinational credit management service and asset management company with operations in Indonesia, Philippines, Singapore, Malaysia and Thailand with nearly two decades of experience in credit management and purchase of non-performing loan portfolios. Collectius is funded through its Swiss holding company in Zug and its largest financier is Stena, which is a Swedish shipping company conglomerate and the largest ferry operator in the world. 

Source: Collectius Group