Let’s Understand the Debt Syndication process from John’s case study.
John is an entrepreneur. He owns a manufacturing company called ‘JB Private Limited’. He has been in business for 10 years now. The turnover of his company is Rs. 550 crores. John has one plant and an office in Mumbai. Now his business has been growing rapidly. He realized that he should open one more plant. Due to the increasing orders, his plant cannot take the load. Therefore, he decides to start a new plant in Pune, as the efficiency of his business increases and he will get more orders.
While he is calculating and analyzing the amount of funding required for the business expansion he realizes that he needs funding of Rs. 100 crores. One financial institution cannot lend such a huge amount of loan. He goes to different banks to get loans from each one. Soon he realizes this process is complicated.
One of his business colleagues recommends he approach Terkar Capital for debt syndication services. John approaches one of us and we set up a meeting with him to discuss his requirements.
| Company Turnover | Rs. 550 Crores |
| Amount Of Funding Required | Rs. 100 Crores |
| Mortgage Availability | Factory Land, Commercial Property, Residential Property |
| Company Industry | Manufacturing Industry |
Business financing often involves the complex process of Debt Syndication, where various lenders collaborate to provide funds to a borrower. Thus, During the meeting with Mr. John, our team understood the requirements of the amount, mortgage available, expansion plan, and expected rate of interest. After we understood his business situation and requirements, we were very clear the desired amount could not be arranged from a single financial institution. We had to put in a couple of good bankers. So that can take partial exposure with pari passu. Thus, we informed Mr. John, that we will arrange the required funding through the debt Syndication facility.
Debt Syndication means that it takes place when a loan asked by a business or corporation is too large for one financial institution to lend. So, it is basically outside the scope of the lender’s risk exposure level. Several lenders take the funds. A debt syndication loan is a structured product that is arranged and administered effectively. So, this is generally done by a third party or a consulting firm since there are many lending parties involved.
| Business Commencement Year | 2010 |
| Amount Required | Rs. 100 Crores |
| Moratorium Period | 24 Months |
| Amount Sanctioned | 105 Crores. |
| Customer Service Experience | 4.4/5 |
We prepared a proposal for John’s loan and reached out to various lenders regarding the debt syndication process. After a week we had all the lending financial institutions, the documentation, and the soft approval ready. Once Mr. John was OK with the soft approval, we executed the whole operational process. So, we arranged the funding. He was very happy with our services and the execution of the entire process.
Understand the Myths about Debt Funding.
Terkar Capital specializes in the debt syndication process. Our credibility in the market has helped us to cultivate many valuable connections with various lending parties. So, therefore we provide the best debt syndication opportunities in India. We understand that the debt syndication process may be cumbersome and long-drawn for some of our clients. There is a need to meet and coordinate with multiple lenders. It is for these loans and needs to arrange many permutations and combinations.
But, no worries now!! Our highly trained executives at Terkar Capital are here to assist you at every step of the debt syndication process. Thus, being one of the best debt syndication firms, we coordinate the entire procedure for you. We get your debt syndicated at ease.
Do reach out to us with any questions or doubts. To ensure that you get the best service, please contact us before visiting.
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