Debt Sales

Debt sales provide lenders with an expedited solution to resolve problem exposures and liquidity constraints, manage loan book thresholds and regulatory capital impacts. For banks in particular, strategic loan sales can improve capital adequacy ratios (CARs), which gauge lenders’ ability to absorb potential losses without becoming insolvent where certain loan exposures push too close to internal or regulatory thresholds. In such situations, loan sales reduce overall loan book exposure, freeing up regulatory capital held against those loans, and improving liquidity and loan book health. 

Partnering with BTG Advisory as an external debt adviser opens the door to our global network of secondary debt investors. These include high-level relationships at private equity funds, hedge funds, investment banks, private credit asset managers, family offices and sovereign wealth funds. Our team is highly proficient in navigating secondary debt markets and can support lenders in identifying the optimal loan portfolio to maximise liquidity improvement, evaluate the loan portfolio, determine an accurate market value price, build the data room, manage the sales process, identify and attract qualified buyers and negotiate optimal terms. 

Inevitably, price is always the priority. Lenders do not want to give away value but often have to be prepared to accept some impairment for the price of secondary market liquidity. Our job is to minimise the bid–ask spread by assembling a competitive bidder pool and providing access to the best possible data to increase transparency for qualified buyers. We aim to provide an end-to-end, smooth, transparent and efficient loan sale transaction, leveraging technology to coordinate with all stakeholders.