Our Corporate Credit Services Unit is committed towards meeting financial requirements and providing financials solutions to high valued corporate customers. The financing requirement may be fulfilled solely by the Bank or through consortium arrangement. Over the years, our Corporate Credit Services unit has been successful towards building and maintaining diversified credit portfolios in various lending sectors such as agriculture, manufacturing, energy, construction, transport, information technology, trading, tourism, etc.
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held as secondary security or collateral. Project finance is especially attractive to the private sector because companies can fund major projects off balance sheet.
Trade finance relates to the process of financing certain activities related to commerce and international trade. Trade finance includes such activities as lending, issuing letters of credit, factoring, export credit and insurance. Companies involved with trade finance include importers and exporters, banks and financiers, insurers and export credit agencies, and other service providers.
Working Capital Finance:
Working capital finance is a loan that has the purpose of financing the everyday operations of a company. Working capital loans are not used to buy long-term assets or investments and are instead used to cover accounts payable, wages, etc. Companies that have high seasonality or cyclical sales cycles usually rely on working capital loans to help with periods of reduced business activity.
Syndicated Loan Arrangement:
A syndicated loan, also known as a syndicated bank facility, is a loan offered by a group of lenders – referred to as a syndicate – that work together to provide funds for a single borrower. The borrower could be a corporation, a large project or sovereignty, such as a government. The loan can involve a fixed amount of funds, a credit line or a combination of the two.
In Consortium Lending, several banks or financial institutions finance a single borrower with common appraisal, common documentation, joint supervision and follow-up exercises, these banks have a common agreement between them and follow-up exercises, the process is somewhat similar to loan syndication.