Debt Syndication Services in Kenya
2Max Group have built a formidable presence in the area of debt syndication services in kenya and project finance with an experience of over two decades. As the lead arranger, 2Max Group have arranged both long & short term as well as domestic & overseas funds for various sectors such as Energy, Pharmaceuticals, ADG, Cement, Power, Infrastructure, Paper, Hospitality, Healthcare, Hospitality and Agriculture.
Debt Syndication services in kenya is undoubtedly the need of the hour for all banks and corporate. We provide a comprehensive suite of advisory services packaged with resource raising. Our project syndication division is developed uniquely to bridge the separation between the promoters and lenders through its understanding and experience in the area. Our expertise provides only the best to the investors and corporate, enabling them to take care of their business, stress free, helping them raise funds from banks, NBFCs, debts and mezzanine funds.
Our Debt Syndication services wing encompasses funding activities for diverse business requirements of corporates. We assist corporates to leverage on debt as an instrument to raise capital through structured financial products for various requirements including Greenfield projects funding, expansions, working capital and in structuring and syndicating funds for acquisitions.
While providing comprehensive services for Debt Syndication services in kenya, 2Max Group examine all factors of industry, economy and business. 2Max Group provide support services such as Structuring and critical evaluation of the short, medium or long term financial requirement, Preparation of Financial plans as well as identification of size and type of the debt, arranging sanction of long term loan, facilitating execution of requisite documents and due disbursal of loans, Placement of Debentures, Preference Shares with Investment Institutions, Banks, Mutual Funds and other investors. Also facilitates Corporates in arranging the working capital limits (fund based and Non fund based) from Banks, arranging finance by assignment of debt, cash flow financing against escrow receivables, trade credit financing etc.
Our professionals’ advice is supported by a true understanding of the issues involved and challenges faced by our clients, connectivity with the financial markets, deep sector knowledge and a skilled negotiation prowess.
Team of 2Max Group possesses necessary expertise and experience in syndicating debt of a large value and is keen in accepting such assignments in Kenya & abroad.
Our Debt Syndication Services in Kenya Includes:
- Project Finance
- Working Capital Finance
- Term Loans
- Corporate Loans
- Structured Finance
- Trade Finance
- Promoter Funding
- Loan Against Shares
- Cross Border funding for Mergers & Acquisitions
- Over Seas Funding (ECB, FCNR and FCCB)
- Mezzanine Funding
- Factoring Services, Bill Discounting (LC based and non-LC based
Project financing is an innovative and timely financing technique that has been used on many high-profile corporate projects and is emerging as the preferred alternative to conventional methods of infrastructure financing and other large-scale projects financing worldwide.
Specialized in Techno, commercial study of Industrial & Service Sector Projects, Financial Pundits examines technical & financial inputs, market analysis of the products along with future viability of the project under various scenarios, including making detailed study of all the revenues, costs and possible means of financing. A comparative study of alternative technologies available and costs of the same and their efficiencies, determining the appropriate size of the project, looking at the size of the market, availability of alternate finance, capacity, the current and future position of the industry etc.
Our Services Include but are not limited to
- understanding the rationale for putting up the project
- understanding the rationale for project financing
- prepare the financial plan
- assess the risks
- design the financing mix
- Raise the funds
- Assist in executing legal documents
- Assist in Disbursement process
Fund Based Finance for capital expenditure / acquisition of fixed assets towards starting / expanding a business or industrial unit or to swap with high cost existing debt from other bank / financial institution.
Non-Fund Based Finance in the form of Deferred Payment Guarantee for acquisition of fixed assets towards starting / expanding a business or industrial unit.
External Commercial Borrowings
For project finance the funds are also raised through External Commercial Borrowings and Foreign Currency Term Loans. The rate of interest is relatively low as compared to Kenyan Shillings
Working Capital Finance(Corporate Loans Included)
Working Capital Finance
A firm’s working capital is the money it has with it to meet current obligations (those due in less than a year) and to acquire earning assets. Financial Pundits helps corporates in raising Working Capital Finance to meet their operating expenses, purchasing inventory, receivables financing, either by direct funding or by issuing letter of credit and other similar instruments
- Funded facilities, i.e. the bank provides funding and assistance to actually purchase business assets or to meet business expenses.
- Non-Funded facilities, i.e. the bank can issue letters of credit or can give a guarantee on behalf of the customer to the suppliers, Government departments for the procurement of goods and services on credit.
- Available in both Indian as well as Foreign currency.
Types of Working Capital Finance
This is a running account facility that is extended for a short period, not more than 12 months and reviewed regularly. Banks normally lend money against the security of stock and debt. In addition, the borrower only has to pay interest on the amount actually utilized by it. In order to repay and close the account , simply deposit the outstanding dues into the account.
Get access to cash immediately as and when required, means the act of overdrawing from a Bank account. In addition, the borrower has to pay only the interest on the amount actually utilized by it. In order to pay, simply deposit the outstanding dues into the account.
Pre-shipment Finance/Packing Credit
Short term, pre-shipment financing enables exporters to procure raw materials for the manufacture of finished goods for export. The facility is available both in Kenya Shillings and in major foreign currencies to Exporters, enabling the exporters to compete in global market against others.
Short term, post sale financing to the exporter to provide liquidity during the credit period permitted to the overseas buyers to make payment. The facility is available both in Kenya Shillings and in major foreign currencies to Exporters, enabling the exporters to compete in global market against others.
As an importer, one can avail of Buyers Credit facility at very competitive rates. One can make the import payment to its overseas supplier by availing the buyers credit and can repay the lender at a later date. The funding is arranged from the overseas network branches and one can avail of this product in major currencies. Availing Buyers credit would be subject to compliance with the bank’s internal process and policy requirements.
Short term corporate loans
These will be demand loans of less than or upto 12 months’ tenor availed by borrowers to support temporary cash flow mismatches or to avail short-term interest rate arbitrage.
Long Term corporate loans
These will be demand loans of 12 months to 36 months’ tenor availed by borrowers to support long term augmentation of working capital , procurement of certain assets , cash flow mismatches etc
Local and foreign currency Bank Guarantees issued on the behalf of the borrower against specified collaterals for its business needs.
Letters of credit (L/C)
An L/C is a Banker’s undertaking on behalf of a constituent to pay to a third party against compliance of stipulated conditions. This involves, irrevocable sight and usance L/Cs, back to back L/Cs, Standby L/Cs & Inland & Foreign L/Cs.
Structured Finance Advisors
Over the years, we have built up significant expertise in structuring appropriate financing solutions for client specific situations and identifying and placing the transaction with institutional investors. Our portfolio of solutions comprise the following-
- Promoters Funding
- Acquisition Financing
Promoters’ financing is mostly done to enable promoters to raise their stake in the company. The financing is usually against collateral of shares or other securities held by the promoters in any of the group company. The transaction helps in unlocking the value of promoters’ shareholding by raising additional funds. It can also be structured to refinance a loan raised against the same shares by the promoters earlier.
There has been a significant increase in the number of acquisitions by Indian companies, both domestic as well as overseas. Acquisition financing plays a critical role in the success of inorganic growth planned by the acquirer. Based on each client’s unique requirements, we have advised on acquisition financing through appropriate stacked financing structures which comprise foreign currency senior secured debt with recourse to parent companies, rupee senior secured debt with recourse to parent companies, equity investment by the promoters, non-recourse debt, guaranteed mezzanine debt with equity upside.[/vc_column_text][/vc_column][/vc_row]