Collectius, a Singapore-headquartered pan-Asian NPL restructuring firm, has acquired more than $800 million of non-performing loans (NPLs) in Vietnam, marking its first portfolio in the country since its foray into the market at the end of last year, according to an announcement.
The deal includes a combination of credit cards and personal loans, and represents the largest single acquisition made by Collectius to date.
The NPLs were a joint acquisition by Collectius and IFC, a member of the World Bank Group. Both parties partnered in 2020 to launch a $60 million Distressed Asset Recovery Platform Program (DARP) that focuses on the acquisition and resolution of distressed assets across emerging markets.
Through this programme, the company claims to have helped many customers across the region to meet their financial obligations and regain creditworthiness. IFC is also a minority equity shareholder in Collectius.
In addition, Collectius recently acquired NPL portfolios from a leading super app in Southeast Asia, as part of a regional deal that covers five countries including Vietnam.
Through these NPLs acquisitions, Collectius now serves more than 195 thousand customers in Vietnam and is in discussions with several financial institutions to acquire more portfolios.
“Vietnam is one of the fastest-growing economies in the world and the banking system, alongside the central bank, is accelerating the process of handling and restructuring bad debt. As a leading fintech pioneer in unsecured debt purchases, we are excited to work with partners in the country to contribute to a well-functioning NPL market that is key to a healthy banking sector”, said Gustav A. Eriksson, Group CEO at Collectius.
Collectius is one of the few regional retail NPL purchasing and servicing companies that operate in markets such as Indonesia, Malaysia, the Philippines, Thailand, and Vietnam in Southeast Asia.
Last year, the firm acquired Magnate Group Plus, one of Thailand’s top five debt servicing companies, for an undisclosed amount.
Collectius aims to transform the debt management industry in Asia. Its processes are specifically designed to provide an end-to-end digital user experience that is secure, simple, and frictionless. It is digitally driven to facilitate an efficient and professional mediation process, that sets the benchmark for the wider industry.
Collectius is majority-owned by its two founders Gustav A. Eriksson and Ivar Björklund, with the remainder owned by International Finance Corporation (IFC), Stena AB and Formica Capital.