Banorte seeking IFC funds to buy up distressed assets

Thursday, April 14, 2011

Mexico's Banorte is seeking US$70mn in funding from the IFC to buy up distressed assets, including non-performing loan portfolios, real estate portfolios and investment projects.

According to a document on the IFC's website, the investment would be managed by Sólida Administradora de Portafolios, a distressed asset management company set up in 1997 and fully held by Banorte.

"If successful, the proposed project has the potential to be replicated by other entities in Mexico, increasing this way the level of transparency of financial institution's balance sheets," the proposal on the IFC website reads.

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The whole project could end up being worth as much as US$200mn. The IFC is scheduled to consider the investment around mid-May.