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Services
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Services rendered by IDBI Bank under Corporate Banking cover debt syndication and specialized advisory services to the corporate in the infrastructure and allied sectors. The Bank offers Project Appraisal, Debt Syndication, Corporate advisory services and Securitization & Structured products as specialized services.
(A) Appraisal:
IDBI Bank has cutting edge capabilities in the appraisal of large projects and has over the years earned reputation in appraisal of these projects, which are well accepted in the banking industry. Project Appraisal Department has a dedicated team of qualified and experienced professionals with domain knowledge in the infrastructure and other major industry sectors, including technical, financial, legal and financial disciplines, to carry out appraisal of large infrastructure and non-infrastructure projects.
IDBI Bank’s appraisals have been used by the corporates, besides availing loan facilities for implementing projects, to finalise their decisions in bidding for new projects, assets acquisition, business plans or disinvestments decisions. PAD has offered these services to PSU majors like Indian Oil, SAIL, ONGC, HPCL, NALCO, NTPC and leading Industrial Groups such as GMR Industries, Tata Group and Aditya Birla Group for their various projects.
(B) Debt Syndication:
Over the last five years, the Bank has been offering its debt syndication services to corporates by arranging financial assistance (both term loan and Working Capital) to their projects and operations. The hallmark of IDBI Bank’s Syndication process is that IDBI Bank takes the role of lead bank for debts arranged by it, by financing major share of debt in the debt programme. Such a decision always has a positive impact in arranging of loans. The Bank also syndicates FC loans for ECB requirement of corporate clients.
The Syndication, Structuring and Advisory Department, (SSAD) has a good complement of qualified and experienced team of professionals who are taking care of the clients’ needs. The team has been dealing transparently and takes a balanced view on the risk perceptions of the project. Reckoning clients’ special needs, tailor made solutions are being provided promptly.
IDBI Bank is rated among top three INR debt arrangers for the year 2011 with market share of 8.2%.
Since its inception, the syndication team has concluded more than 90 deals with aggregate debt amount of nearly Rs.1.9 lakh crore. Major Industrial houses such as Reliance, Aditya Birla, ESSAR, Vedanta, TATA, Adani, Bharati, Jaypee, have reposed their faith in IDBI Bank’s capability to arrange debt for their projects.
IDBI Bank has emerged as a leading player in debt syndication field and has excellent business relationship with all the public & private banks and Financial Institutions. The project related Information Memorandums (IM) prepared by the SSAD team are well received by the participating bankers and FIs. Over the years, the Bank has developed a good rapport with almost all banks and FIs in convincing them about the strengths of the projects syndicated by it.
Team SSAD has officers who have specialized the documentation requirements of the clients, who ensure that terms of assistance and covenants of all lenders are aligned.
(C) Advisory Services:
Corporate Advisory: The strong domain knowledge in infrastructure and allied sectors has provided IDBI Bank a niche in offering the advisory services for the corporate in the infrastructure sector. The range of advisory services offered by IDBI Bank include merchant appraisal of projects, acquisition / sale of assets, business valuation and pre bid advisory for PPP projects in Road sector. IDBI has been permitted by the SEBI to act as the agent for the IPO monitoring of corporate which come out with public issue of equity shares of issue size higher than Rs.500 crore.
(D) Environmental Services:
IDBI Bank has undertaken the pioneering role in the Indian banking sector in the area of environmental banking and has been active in this field for over 20 years.
IDBI Bank has created an exclusive group working on climate change and more specifically on carbon credits advisory services to the clients to deal with Clean Development Mechanism (CDM) / Carbon Credits of Kyoto Protocol and Voluntary Emission Reductions (VERs) authorities.
This group has devised a structured product for providing upfront finance against the carbon credit receivables. The product is well accepted by the Indian project developers. Click here for the details of services offered in CDM and renewable energy sector.
IDBI Bank is presently implementing Ozone Depleting Substances (ODS) phase-out projects and the India Chiller Energy Efficiency Project (ICEEP) in association with World Bank and Govt. of India.
The carbon credit group is closely associated with the World Bank in providing an End–To–End solution for the chiller users of India in switching over from a high carbon chiller to energy efficient low carbon chiller. Click here for the details of ICEEP.
IDBI Bank also publishes a monthly newsletter called "IDBI Carbon Developments". The magazine covers the analysis of the pricing of Certified Emission Reductions (CERs) on spot and futures, status of CDM project registration and various other developments happening in the carbon market, Renewable Energy Certificate (REC) trading and Perform Achieve and Trade (PAT) mechanism launched by the Govt. of India.
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