Quick-Bites” for Growth Hungry Entrepreneurs:

PA Capital Partners promise a quick relief for budding cash trapped entrepreneurs and companies who have the business potential but are not being able to scale-up or maintain a growth in spite of prevailing opportunities. We, PA Capital Partners undertake immediate processing and best in class terms (maximum loan at lowest rate of interest with easy and relaxed repayment) making things easy, efficient and commercially viable. The following services can be availed by our clients within our quick-bites services:

• Term Loan
• Business Loan
• Equipment financing
• Mortgage Loans
• LAP – Loan Against Property
• Project Funding.
• Corporate Funding

Structured Finance/Debt Syndication:

The deliverability and structure of debt is usually a key to ensuring that long term growth objectives are met. Our experience and market presence gives us intimate knowledge of the appropriate financing options. Our comprehensive advisory services in this domain include:

Our wide range of advisory services in this domain include:

• Advising corporations, institutions and sovereign entities on the structure of new debt issues and the refinancing of existing obligations
• Advising on debt market opportunities and condition
• Providing advice and structuring of acquisition finance for all types of corporate transactions including mergers and acquisitions and leveraged buyouts
• Providing advice on refinancing of acquisitions to replace short-term finance with more efficient long-term approaches from the banking or capital markets
• Creating and supporting in implementing tax-efficient financing, including both domestic and cross-border leasing transactions
• Providing advice on refinancing of asset-based businesses and the design and financing of novel approaches in vendor financing.

In giving you objective advice, we seek to:

• Support your decision making with clear analysis of available options and strategies
• Provide market experience in relation to the key debt markets, products and counterparties — introducing you whenever needed to key players in the debt capital markets
• Create a competitive environment
• Arm you for negotiations with bankers and investors
• Advise you throughout the transaction process — from initial strategy through to implementation
• Help you analyze your options, address the impact of alternative funding routes on your business and objectives
• Work with your existing advisory team, providing a specialist perspective on funding related issues • Provide skilled resource to do the heavy lifting
• Share our knowledge of the range of potential financiers, their appetite and their attitude to credit, pricing and structure.

Our professionals’ advice is supported by a true understanding of the issues and challenges faced by our clients, connectivity with the financial markets, deep sector knowledge and a skilled negotiation prowess.

Debt re-structuring:

Debt re-structuring is a process that allows a private, public or a sovereign entity facing cash flow problem, to reduce and renegotiate its delinquent in order to improve or restore liquidity and rehabilitate so that it can continue its operations. Debt re-structuring typically involve a reduction of debt and extension of payment terms.

Debt syndication for bigger projects/expansion plan etc.:

Debt syndication is an arrangement made between two or more banks/financial institutions to provide the borrower a credit facility using common debt documents.
PA Capital Partners acts as arrangers of loans and advances to its corporate clients. PA Capital Partners' pan India network and excellent affinity with Financial Institutions (FIs) enable swift syndication of debt and debt instruments. We prepare excellent Corporate Profiles, Financial Profiles and Information Memoranda for Loan Syndication for which we have won several accolades. Our presentations have been well appreciated by Financial Institutions and our services in Loan Syndication have been acclaimed excellent by several of our satisfied clients.

Debt swapping at lower rate of interest with enhanced facility:

Debt swapping is available to the companies who are already availing an existing facility i.e. term loan or C.C. limit from a Bank/Financial institution, but at a higher rate of interest. We arrange the same facility at a lower rate of interest for our clients. Apart from that we also enhance the existing limits on the same collateral, if its' market value is more than the previous assessment rates.

External commercial borrowing (ECB):

ECB (External Commercial Borrowings) is a mechanism used in India to assist the access to foreign money by Indian corporations and PSUs (Public Sector Undertakings). ECBs include commercial bank loans, buyers' credit, suppliers' credit, securitized instruments such as Floating Rate Notes and Fixed Rate Bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of Multilateral Financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc. ECBs cannot be used for investment in stock market or speculation in real estate. For infrastructure and Greenfield projects, funding up to 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs is allowed. External Commercial Borrowings (ECBs) include bank loans, suppliers' and buyers' credits, fixed and floating rate bonds (without convertibility) and borrowings from private sector windows of multilateral Financial Institutions such as International Finance Corporation.

The DEA (Department of Economic Affairs), Ministry of Finance, Government of India along with Reserve Bank of India, monitors and regulates ECB guidelines and policies. In India, External Commercial Borrowings are being permitted by the Government for providing an additional source of funds to Indian corporate and PSUs for financing expansion of existing capacity and as well as for fresh investment, to augment the resources available domestically. ECBs can be used for any purpose (rupee-related expenditure as well as imports) except for investment in stock market and speculation in real estate.

ECB GUIDELINES: The important aspect of ECB policy is to provide flexibility in borrowings by Indian corporate, at the same time maintaining prudent limits for total external borrowings. The guiding principles for ECB Policy are to keep maturities long, costs low, and encourage infrastructure and export sector financing which are crucial for overall growth of the economy. The ECB policy focuses on three aspects:
1. Eligibility criteria for accessing external markets.
2. The total volume of borrowings to be raised and their maturity structure.
3. End use of the funds raised.

ECB POLICY:
• External Commercial Borrowings (ECBs) are defined to include commercial bank loans, buyers' credit, suppliers' credit, securitized instruments such as Floating Rate Notes and Fixed Rate Bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of Multilateral Financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, etc.
• ECBs are being permitted by the Government as a source of finance for Indian Corporate for expansion of existing capacity as well as for fresh investment.
• The policy seeks to keep an annual cap or ceiling on access to ECB, consistent with prudent debt management.
• The policy also seeks to give greater priority for projects in the infrastructure and core sectors such as Power, oil Exploration, Telecom, Railways, Roads & Bridges, Ports, Industrial Parks and Urban Infrastructure etc. and the export sector.
• Applicants will be free to raise ECB from any internationally recognized source such as banks, export credit agencies, suppliers of equipment, foreign collaborators, foreign equity-holders, international capital markets etc. offers from unrecognized sources will not be entertained.

Inter-Corporate Deposits ( ICD):

Inter-Corporate Deposits (ICD) is an unsecured borrowing by corporate and FIs from other corporate entities registered under the Companies Act 1956.
The corporate having surplus funds would lend to another corporate in need of funds. This lending would be an uncollateralized basis and hence a higher rate of interest would be demanded by the lender. The short term credit rating of the corporate would determine the rate at which the corporate would be able to borrow funds. Further the credit spreads demanded even for the top rated corporate would be higher than similar rated banks and the rates on ICDs would be higher than those in the Certificate of Deposit (CD) market. The tenor of ICD may range from 1 day to 1 year, but the most common tenor of borrowing is for 90 days.

Standby letter of credit (SBLC):

Standby letter of credit (SBLC) can be used to secure a variety of transactions where third party guarantees of payment may replace a cash or bond deposit. Transactions that are typically secured by a Standby letter of credit include:
lease, mortgage, performance bond

Funds against shares

Funding against shares is short term funding that allows the promoters of the listed company to raise funds/debt against their shares.

Foreign Direct Investment (FDI)

Foreign Direct Investment (FDI) is defined as a company from one country making a physical investment into building a company in another country. It is the establishment of an enterprise by a foreigner. The FDI relationship consists of a parent enterprise and a foreign affiliate which together form a multinational corporation (MNC).

Private equity (PE):

Private equity (PE) is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange. Investments in private equity most often involve either an investment of capital into an operating company or the acquisition of an operating company. Capital for private equity is raised primarily from institutional investors. There is a wide array of types and styles of private equity and the term private equity has different connotations in different countries.

Our approach to the market place enables our professionals to have a deep understanding of private equity funds. This allows us to provide truly independent advice on buy outs. We provide objective and unbiased counsel on buy outs and we do this from the perspective of our firms' clients whether it is the management team, private equity house or exiting vendor. PA CAPITAL PARTNERS’s Corporate Financiers are fluent and insightful across the buy out process, including
• Transaction feasibility
• Equity capital raising
• Debt capital raising
• Deal structuring
• Pricing
• Negotiating with vendors, finance providers and management teams
• Effective project management to successful closing.

Our involvement in buy out processes ranges from assisting management teams in business planning, to assessing key issues to be addressed in a buyout, to recommending equity and debt partners for a management team, through to advice on deal tactics and negotiations.

Private equity transactions can be complex, with a number of moving parts. Our advice helps to ensure that the myriad of issues that are peculiar to a private equity transaction can be dealt with at the right time to deliver a successful completion.

We are hands on advisers and bring a wealth of experience to bear for the benefit of our firms’ clients. Our extensive knowledge of private equity drivers, approaches and structures, in both sell and buy side situations means that we have delivered value time and time again for our clients.

We are intimately familiar with the private equity market and have worked closely with a range of global private equity firms. This contact network and breadth of experience helps ensure that clients receive advice that is independent, well rounded, thoroughly commercial and informed.

Venture capital (VC)

Venture capital (VC) is a broad subcategory of private equity that refers to equity investments made, typically in less mature companies, for the launch, early development, or expansion of a business. Venture investment is most often found in the application of new technology, new marketing concepts and new products that have yet to be proven.

Packing credit limit (PLC)

Packing credit limit is a facility sanctioned to an exporter in the Pre-Shipment stage. This facilitates the exporter to purchase raw materials and manufacture or produce goods according to the requirement of the buyer and get it packed for onward export. Packing Credit limit covers all the working capital needs of the exporter including raw materials, wages, packing costs and all pre-shipment costs. Packing credit limit is available generally for a period of 90 days and the exporter has to pay lower rate of interest compared to Overdraft or Cash Credit facility.

Letter of Credit (LC)

Letter of credit is a document issued by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment undertaking. Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another.

Bank Guarantee

Bank Guarantee is an indemnity letter in which the bank commits itself in writing to be legally bound to pay a certain sum if its party fails to perform or if any other form of default occurs.

Trade Finance

Factoring
A trade finance mechanism whereby an exporter sells its export receivables (bills of exchange or promissory notes, or simply issued invoices, which the exporter is selling on an open account basis) at a discount. The company purchasing the receivables is called a factor. Factors are normally specialized financial services companies, but many are owned by banks. Normally, after the factor has purchased a receivable, the importer or buyer pays the factor directly. Some factors actually issue the invoices to buyers and, in effect, operate the exporter's sale ledgers. Some factors operate on a non-recourse basis i.e. they assume the risk of nonpayment. Less frequently, the factor will take recourse to the exporter for all or part of the sums involved in the event of nonpayment or delayed payment by the buyer.

Buyer's credit
Buyer's credit is the credit availed by an Importer (Buyer) from overseas Lenders i.e. Banks and Financial Institutions for payment of his Imports on due date. The overseas Banks usually lend the Importer (Buyer) based on the letter of Credit (a Bank Guarantee) issued by the Importers (Buyer's) Bank. In fact the Importers Bank brokers between the Importer and the Overseas lender for arranging buyers credit by issuing its Letter of Comfort for a fee. Buyers credit helps local importers access to cheaper foreign funds close to LIBOR rates as against local sources of funding which are costly compared to LIBOR rates.

LC Discounting
LC Discount is Letter of Credit Discount. The Letter of Credit from the prime banks or financial institutions is considered as a complete security. A Letter of Credit is a letter from Bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. Lets consider that the consignee wants to pay you after 90 days after it reaches him. But you want to be paid immediately after the documents are accepted. The banks will offer to pay you on a discount basis, meaning that they deduct a percentage from the value owing to you, which they keep as the cost of discounting; you get paid immediately the value less that the discount.

Internal credit rating
Credit rating assesses the credit worthiness of an individual/corporation. It is an evaluation made of a borrower overall credit history. Credit rating is calculated from financial history and current assets and liabilities. Typically, a credit rating tells a lender or investor the probability of the subject being able to pay back a loan

Infrastructure Finance

• Though the procurement of finance for infrastructure projects is complex, highly competitive, costly and time-consuming process, we simplify and customize it, saving significantly on both time and monetary parameters.
• Create a commercial framework for the infrastructure projects in such a way that it attracts the interest of-quality bidders and investors.
• Calculations and workings are projected in a simple way to the prospects so as to enhance their understanding of the subject and hence increase the chances of their positive response to your infrastructure project report.

Project Finance In India

Project finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors. The loans are most commonly non-recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather than from the general assets or creditworthiness of the project sponsors, a decision in part supported by financial modeling.
The funding is typically secured by all of the project assets, including the revenue-producing contracts. Project lenders are given a lien on all of these assets, and are able to assume control of a project if the project company has complications complying with the loan terms.

Lease Rental Discounting

Lease Rental Discounting (LRD) is a term loan offered against rental receipts derived from lease contracts with corporate tenants. The loan is provided to the lessor based on the discounted value of the rentals and the underlying property value.
Under the Lease Rental Discounting program, the loan amounts disbursed by a bank or an institution will be a function of the customer’s monthly rental receipts, balance tenure of the lease and the value of the property among other factors. This product offering is specifically targeted at owners of prime commercial properties that are leased out to reputed lessees. The EMI (equated monthly installment) offered to a customer is set as a percentage of the total monthly rentals being earned on the collateral. The overall loan amount will be restricted to 55% of the property’s valuation. This is a competitive customer offering with loans being offered through quick processing, subject to customer meeting the Bank’s criteria.

Promoter Funding

Promoter funding is offered to promoters of the companies against their share holding in their respective company. With the help of this facility the promoter can increase the share holding or use in expansion and diversification of the business.

Benefits
• Increase promoters holding in the business with the use of existing stake
• Meet liquidity requirement for expansion and diversification of business
• Easier and faster processing
• Promoters do not have to liquidate their holdings to meet short-term cash requirements
• Promoter can increase their stake through buying at lower price

 

 

BECOME OUR BUSINESS PARTNER

If you are credit advisory firm and you are seeking project funding, debt syndication, debt swapping, debt re-structuring, inter corporate deposits (ICD), foreign direct investment (FDI), external commercial borrowing (ECB), venture capital (VC), private equity (PE), packaging credit limit (PLC), letter of credit (LC), standby letter of credit (SBLC), infrastructure finance for your clients you may become a partner of PA Capital Partners. Write to us at info@pacapital.co.in or call us at 09810194412 and we shall set up the terms for you. 

Office

PA Capital Partners
J-1947 Chittaranjan Park (First Floor)
New Delhi – 110019
INDIA

PA Capital Partners
A-2201, Heritage One,
Sector 62, Golf Course Extension Road,
Gurgaon, Haryana,
INDIA

Contact

Write to us or call us

info@pacapital.co.in

+91-11- 4160-1866
+91 9810194412