Reuters- Fund firm PSource Capital said on Thursday it will seek to raise at least $100 million (50 million pounds) for a fund to invest in non-performing loans in Southeast Asia, an area it believes offers opportunities due to regulatory changes.
PSource Asian Recovery Limited will aim for a return of 15-20 percent a year by buying the dollar-denominated senior secured debt of firms that have defaulted on debt payments, PSource Capital managing director Soondra Appavoo told Reuters.
He said the implementation of Basel II banking rules, which are designed to ensure banks have set aside enough capital to cover risks on their books, and the need to comply with International Accounting Standard 39 were putting pressure on Asian banks to mark down the value of non-performing loans to realistic levels and then to sell them.
