The 2 companies involved in this transaction are Delhi-based AA- rated NBFCs backed by global equity funds. While the parent group is in the wholesale corporate lending sector and retail consumer lending sector, its group concern in into housing finance, majorly into lending for the affordable housing segment.
Both the groups have remained one of our most prestigious clients. We have raised several rounds of debt (term loan & working capital) for them year-on-year. Coinmen also helped in improving credit rating of the group from BBB to AA- over a period of time and improvised on bank lines from time-to-time so that the groups get the best possible terms aligned to the market and their profile.
The parent group had a consortium banking arrangement at the personal guarantee of the borrowers, where the arrangement was leading to a delay in financial tie-ups for the group. The cost of borrowing the loan was also relatively high, thereby creating issues for the group’s cash flow management.
To achieve a transaction structure which facilitates continuous, cost-effective fundraising with optimal security