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Debt Syndication and Advisory Services - IDBI Bank Syndication and Advisory Services
IDBI Bank has assisted a large number of companies in India, both in infrastructure as well as in non-infrastructure space. IDBI has made a significant contribution to the growth of several companies in Power / Energy, Roads, Ports, Airports, Urban Infrastructure, Chemicals, Fertilisers, Pharmaceuticals, Steel, Paper, Cement, Textiles, Sugar and other sectors.
Under Corporate Banking portfolio IDBI Bank provides specialized advisory services to the corporate in the infrastructure and allied sectors.
The services rendered by IDBI Bank under Corporate Banking cover Project Appraisal , Debt/Equity Syndication, Financial / Merchant Appraisal, Corporate / Financial Advisory Services, Securitization and structured products, IPO monitoring and Carbon Credit Advisory Services .
The major focus is on developing tailor made products and solutions to meet the specific needs of clients –
- Project Appraisal
- Corporate Advisory
- Environmental Services
(A) Project Appraisal
IDBI Bank undertakes all important aspects relating to technical, commercial, financial, economic and management appraisal of projects to judge their sustainable viability. 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 (PAD) 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.
Besides availing loan facilities for implementing projects the corporate approach IDBI Bank for undertaking detailed appraisal of their projects to finalize their decisions in bidding for new projects, assets acquisition, business plans or disinvestments decisions. IDBI Bank has been offering these services to PSU majors like Indian Oil, HPCL, ONGC, NALCO, NHPC NTPC, SAIL and leading Industrial Groups such as Aditya Birla Group, GMR Group, Tata Group, and Videocon Group etc for their various projects.
2. Products and Services
3. Syndication Process
4. Advantage IDBI Bank
5. Industry Expertise
All corporate need large requirements of funds by way of debt and equity for timely financial closure of their projects. IDBI Bank assists them to achieve their goals by providing specialized Syndication services in addition to offering large number of Banking Products. 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. As IDBI Bank takes on the role of lead Bank, it always has a positive impact on syndication process. The Bank also syndicates FC loans for ECB requirement of corporate clients.
IDBI Bank has a full-fledged Syndication, Structuring and Advisory Department (SSAD) through which it offers a wide range of financial services for its clients. The Bank has been offering its debt syndication services since 2006 to various corporates by arranging financial assistance (both term loan and Working Capital) to their projects and operations.
SSAD has a good complement of qualified and experienced team of professionals who are taking care of the clients’ special needs and provide solutions promptly. The team has been dealing transparently and takes a balanced view on the risk perceptions of the projects.
IDBI Bank is ranked 2nd largest Mandate Arranger for debt in India for the calendar year 2012.
Since its inception, the syndication team has concluded more than 100 deals with aggregate debt amount over Rs.2 lakh crore. Major Industrial houses such as Reliance, Aditya Birla, ESSAR, Vedanta, TATA, Adani, Bharati, Jaypee, Videocon and Hindalco 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 in the documentation requirements of the clients, who ensure that terms of assistance and covenants of all lenders are aligned.
2. Product and Services
- Rupee Debt Syndication (Term Loan and Working Capital)
- Underwriting of debt
- Arranging ECB, FCCB, ECA and other types of FC funding
- Equity Syndication/Placement of Private Equity
- Arranging M&A Funding
- Private Placement of Bonds/Debentures/Preference Shares
- Appraising and structuring of financial packages
The Process of Syndication is completed in the following stages:
- Understanding the requirements of clients and preparing suitable financing structure
- Appraisal and detailed due diligence
- Preparation and Circulation of Information Memorandum (IM)
- Coordinating with lenders/investors to ensure timely sanction of facilities
- Harmonizing the terms and conditions among all lenders/investors
4. Advantage IDBI Bank
- Internationally Trusted Bank
- Banking company with unique combination of strong development banking and modern commercial banking
- Expertise in funding medium and large scale projects for over 4 decades
- One stop to meet all corporate needs
- Domain expertise in financing all infrastructure and Industrial projects
- Provides Complete Solution from Due diligence to Financial closure
- Strong appraisal capabilities
- Credibility and acceptability among lenders/investors.
- All the project requirements viz. fund based, non-fund based and the services viz. TRA account, Trusteeship etc. are offered under one umbrella
- Strong Balance Sheet to take up substantial exposure
- Well entrenched relationships with banking community for syndication
- Capability to harmonize needs of participants and close transaction quickly
- Transparent process with experience in handling large value syndications
5. Industry Expertise
Since its inception IDBI Bank has been working closely with almost all the industries. The long association with various industries has enabled us to develop core competencies across industry domains. A list of industries where IDBI Bank has carried out syndication is given under.
- Oil Refinery
- Retail Chain
- Consumer Goods Manufacturing
- EPC Contracting
(C) Corporate Advisory Services :
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 Bank has been permitted by 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.
Our advisory services
- Project Appraisal / Merchant Appraisal
- Project Advisory services (Pre and Post bid stages)
a. Scrutiny of the bid documents and comments there on
b. Scrutiny of the financial model and comments there on
c. Preparation of financial model, if required
d. Suggesting suitable financial structure
e. Evaluation of risks and suggesting mitigates
f. Assisting in finalizing the bid
g. Arranging the funds for the project
a. Identifying targets for buying and selling
- IPO Monitoring
- Merger & Acquisition Advisory
b. Due diligence
c. Business/Share valuation
d. Structuring of the transaction
e. Arranging funds
- Share/Business Valuation
- Corporate/Business/Financial Restructuring
- Advisory for Carbon Credit Services
- Advisory for Overseas acquisition
(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 high carbon chillers to energy efficient low carbon chillers. The objectives of the CEEP are two-fold, viz. to reduce greenhouse gas (GHG) emissions and to support the phase-out of use of Chlorofluoro Carbon (CFC), an Ozone Depleting Substance, under the Montreal Protocol. The project provides financial incentives from grant funds provided by the World Bank through the Global Environment Facility (GEF) and Ozone Trust Fund (OTF) to India for encouraging all chiller owners to overcome barriers such as up-front capital costs and perceived technology risks for accelerated replacement of existing CFC based energy inefficient chillers. 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.
How to Apply
Applying for IDBI Bank’s Syndication and Advisory Services is absolutely simple. Click here for contact details of SSAD.