When a borrower requires funds that are too large to be provided by a single lender, or outside the reach of the lender’s risk-exposure degree, funds are agglomerated from a number of creditors in a process termed as debt syndication. Also, discover how Vedicology family business advisors can help your company utilize debt syndication to scale and run operations.
What is Debt Syndication?
Firstly, debt syndication entails a group of lenders funding various portions of a loan into a single borrower. A syndicated loan is a structured product that needs to be organized and administered efficiently. However, this is normally done by a third party or a consulting firm as there are a number of lending parties involved. Hence, the credibility that Vedicology Business Advisors enjoys in the market has helped us cultivate a number of important connections with various lending parties to supply some superb funding options.
Fortune 500 companies initially employed Syndication solutions and syndicated solutions. They needed large amounts of capital for their projects. Today, however, SMEs and large corporations often seek syndicated loans. With a large number of businesses plying in the Indian market today, the requirement for capital is only going to increase and debt syndication in India may offer a viable lending alternative to companies.
- On a private placement basis, we will help you with debt securities/instruments
- Loans from bank(s)/ NBFC(s)
- Interacting with banks for the sanctioning of the loans
- Coordinating with the client’s legal advisors and family business advisors to finalize the financial reports
- Finalizing the regulatory approvals from authorities
- Arrive at the finalized budget issue cost which includes the marketing cost
- Analyzing the operations of the organization concerning the past and future aspects
- Marketing the issue with the Institutional investors
- Preparation of the Information memorandum with the Investors if the funding is debt instruments
- Coordinating with the client for the preparation of due diligence exercise
