Debt Syndication

Debt Syndication –

Our team consist ex-bankers having combined experience of more than 100 years in proving financial solutions. We are having established relationship with all the leading banks in the country, both PSU or Private Banks, as well as abroad in Singapore, Hong Kong, Middle East , Europe and USA. We understand the funding requirement (tenure, type , structure etc) of client first and then provide best suited pragmatic business solution. We firmly believe to work with expertise rather than forwarding proposal without understanding the credentials or story.

1. Working Capital Finance

(i). Cash Credit (CC) –

Cash Credit limit is provided to meet the working capital requirement of the business. The primary security of cash credit limit is current assets of the borrower. Bankers usually maintain 25% margin on cash credit limit. The drawing power of the limit is to be calculated on monthly basis.

(ii). Overdraft (OD) –

OD limits are provided against collateral. The interest is to be calculated on daily utilization and limits are generally for tenure of one year, after which is has to be re-assessed and renewed by the banker. OD limits suits most to small business as it require lesser compliances in comparison to CC limits.

(iii). Bank Guarantee (BG) –

There are two type of BG – Performance BG and Financial BG. Financial BG is a guarantee by the banker to meet the payment obligation if the borrower fails to pay on demand by the party in whose favor BG is issued. In performance BG the obligation of banker arises when the borrower fails to perform / deliver as committed under respective BG.

(iv). Letter of Credit (LC) –

LC ensures the creditability in business transactions and comfort to seller for realization of his dues from buyer since there is an undertaking from a banker to pay if the buyer fails to pay. The LC can be in-land (domestic business – within a country) or Out-land ( international business – Imports).

(v). Derivatives –

Derivate are the instrument used to hedge the exposure of foreign currency and to protect the business against uncertainties in international market. These instrument are required by importer or exporter or organization have borrowings in foreign currency. The structure of any derivative requires highly expertise skills to structure the deal at appropriate pricing. Our team is well experience with relevant expertise to handle any kind of derivative transaction.

(vi). Bills Discounting –

It is a facility taken by borrower to realize money upfront against future realization of sales proceeds from buyer of goods or services. The early realization enables the borrower to steam the growth engine of its business at optimum cost and to enable more volume with value to business performance.

2. Project Finance –

The project may be Green Field (new project) or Brown Field (expansion of existing project) which require funding based on estimated future cash flow of the project. In case of seasonal project the yearly estimation may be required to be broken up in monthly estimates so as to match the cash flow with repayment obligations. For example in case of Wind Power Project the electricity generation may be even on yearly basis. However, on monthly basis the generation may fluctuate which needs to be taken care to ensure the viability of the project and matching payment obligations.

(3) Term Loan –

The business may require funds for creation of capital assets. Such type of funding is provided by lenders in form of Term Loan , the amount of term loan and its structure assessed on the projected cash flows. Our team is having expertise in understanding the business or project , preparing cash flow , drafting project report and arranging funds with appropriate structure and pricing.

(4) Structured Finance –

It is a loan which is required for specific business requirement and has to be structure to meet particular requirement. It requires lot of dedication and understanding before structuring the deal since any wrong structure may become a pain to business or lender. Our team is highly experienced for structuring any business transaction.

(5) External Commercial Borrowings (ECBs) –

ECB is regulated by Reserve Bank of India (RBI). As per RBI master directions for ECB, there are two routes for taking ECB Loan, automatic approval route and approval route. In automatic approval route, the approval is deemed to be available since RBI has specified the industry and amount upto which no approval is required. Under second route, prior approval of RBI is to be taken before processing the ECB transaction. Our team is having connect at all major global location, Hong Kong, Singapore, Middle East , Europe ,USA from where ECB loan can be arranged to our clients

(6) Take out Finance – At times businessman require to buy a project or business where a funding it required to acquire the target assets. Our team is having understanding of diversified industries and number of financial structure available so as to arrange the take out finance for any business deal.

(7). Mezzanine Funding – Mezzanine financing is a hybrid of both, debt and equity, which gives the lender rights to convert the debt to an equity in the company in case borrower default. Normally the right of conversion is after payment of venture capital companies and other senior lenders.

(8) Loan Against Property (LAP) –

LAP is a funding where we unlock the value of immoveable property at most attractive pricing so as to enable the use of such unlocked value in productive business activities. The owner of property is having win-win situation in these type of funding since they not only have the advantage of having appreciations in value of property and rental income but also to the value generated by using the unlocked property value in businesses.

(9) Unsecured Business Loans –

These are suited most to business which are in growing stage and require money to multiply the scale of operation so as to generate more profits. Our team is having connects with 50+ lenders providing unsecured business loans.