Collectius acquires over $800 million in non-performing loans in Vietnam for the first time
SINGAPORE, June 29, 2022 /PRNewswire/ — Collectius, a leading financial institution restructuring partner in Asiaacquired its first portfolios in Vietnam since entering the market late last year, securing more than $800 million non-performing loans (NPL) of a Vietnamcommercial bank based.
The deal, which includes a combination of credit cards and personal loans, represents Collectius’ largest single acquisition to date and signals a growing need for debt restructuring solutions in the country as defaults are becoming more common due to the impact of the pandemic. .
The PNPs were a joint acquisition by Collectius and IFC, a member of the World Bank Group. The two parties teamed up in 2020 to launch a $60 million Distressed Asset Recovery Platform Program (DARP) which focuses on acquiring and resolving distressed assets in emerging markets. Through this program, she has helped many clients in the region meet their financial obligations and regain their creditworthiness. IFC is also a minority shareholder in Collectius.
Additionally, Collectius recently acquired NPL wallets from a leading super app in South East Asiaunder a regional agreement that covers five countries, including Vietnam. Through these NPL acquisitions, Collectius now serves more than 195,000 customers in Vietnam and is in talks with several financial institutions to acquire more wallets.
Banks at Vietnam are expected to experience rapid credit growth this year as the economy reopens after two years of COVID restrictions, and the non-performing loan ratio in the country is expected to increase as regulatory forbearance from restructuring loans is poised to expire. The moratorium on loans issued by the State Bank of Vietnamwhich allows banks to extend the deadlines for reimbursing their debts to customers, will end on June 30, 2022.
“Vietnam is one of the fastest growing economies in the world and the banking system alongside the central bank is speeding up the process of dealing with and restructuring bad debts. As a fintech pioneer in unsecured debt purchases, we are excited to work with partners in the country to contribute to the smooth functioning of the NPL market which is key to a healthy banking sector,” said Gustav A.ErikssonCEO of Collectius Group.
Mandated by major banks and financial institutions, Collectius continues to strengthen its position as the preferred buyer of consumer NPLs by South East Asia, using technology and digital-first strategies to create additional service capacity. It uses what it calls the “Collectius collection method” – a method rooted in ethics, compliance with local and international regulations and a personalized and bespoke approach. Collectius also ensures that all clients who undergo its processes benefit from greater financial literacy by gaining knowledge about interest accrual and the various fees that banks and creditors add to an NPL, while guiding them on the way to free themselves from their debts.
Collectius is a leading restructuring partner for financial institutions in Asia. With operations in Singapore, Indonesia, Philippines, Malaysia, Thailand, India and Vietnam, it has a growing footprint of more than five million customers in these markets. Collectius aims to transform the debt management industry into 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, which sets the benchmark for the wider industry. Collectius is majority owned by its two founders Gustav A.Eriksson and Ivar Björklund, with the remainder held by International Finance Corporation (IFC), Stena AB and Formica Capital.
 IFC Newsroom, IFC and Collectius Launch First Distressed Asset Recovery Platform to Address Impacts of COVID-19 on Banking and Consumer Lending in East Asia Pacific. September 16, 2020.