Maybank has entered into a conditional sale and purchase agreement with Standard Chartered Bank Hong Kong Alternative Investments and ORIX Leasing Malaysia for the disposal of a portfolio of long-standing secured consumer non-performing loans.
The portfolio comprises 8,375 long outstanding consumer loans with a total face value of about $422 million. The loans are mainly secured by residential properties located across Malaysia. The agreement was reached by way of negotiations following a bid process.
The conditions of the sale and purchase agreement include obtaining approval of the sale from the Minister of Finance and the conduct of a validation process by the buyer after which the final purchase price will be determined. The impact of the sale should be reflected in the bank’s results for the financial year ending June 30, 2008.
Datuk Amirsham Aziz, president and CEO of Maybank, said that the sale of this non-performing loans (NPL) portfolio was part of the bank’s continuous effort to complement its various recovery strategies in asset quality management.
He added: The sale of this second tranche is very much in line with our approach to consistently strengthen our asset quality and generating greater value for stakeholders. This agreement marks yet another milestone as it was also concluded through a competitive open bid which attracted significant interest from the market.