According to the media reports, ECL Finance, the non-banking finance (NBFC) arm of the Edelweiss Group, has sold about Rs 4,000 crore of sticky corporate loans to global asset buyers. US-based Farallon Capital and Singapore-based SSG Capital reportedly purchased the assets at 25% haircuts.
ECL Finance had a corporate loan book of about Rs 11,000 crore. Following the latest asset sale, it has now reduced to Rs 7,000 crore, reports added.
Meanwhile with reference to media reports, Edelweiss Financial Services clarified to the bourses on Friday (3 July) that its group entities had in the past year and half, in the ordinary course of business and as part of its strategy to reduce the wholesale credit book, sold certain loan book assets to some investors including two large institutional investors and are further negotiating with a set of investors to sell additional set of loan book assets. Apart from this, for completion of projects, financing is also expected to be provided by the investors, it added.
Edelweiss will announce its fourth quarter earnings on Saturday, 4 July.
The company's consolidated net profit slumped 92.6% to Rs 16.71 crore on a 8.5% decline in total income to Rs 2649.56 crore in Q3 December 2019 over Q3 December 2018.
The Edelweiss Group is one of India's leading diversified financial services conglomerates providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals.