In a developed economy where competition among BFIs is fierce, an Investment Bank plays the role of an “Arranger” to assist the borrower finalize information documents and identify legal sources of financing for their projects. Looking at the current strength of BFIs in the country in terms of capital base, it has become important to appoint an Arranger to arrange a right group of legal financers to finance capital intensive projects which demands huge financial requirement and has long gestation periods.
Nabil Invest as an Investment Bank under Loan Syndication Service will act as an “Arranger” to raise the required capital fund for the Client to meet its financing requirements through syndication financing. Syndication financing involves getting a group of Banks/Financial Institutions (BFIs) / Private Equity / Equity Partners / Other Legal Sources (Participants) to form a syndicate to provide Client its required capital fund under a set of common terms and conditions. Capital intensive projects like infrastructure, manufacturing, hydropower and service sectors usually demand huge capital and thus requires participation of numerous Participants to minimize the risk of single party exposure.
As an Arranger, Nabil Invest on behalf of the Client will contribute by identifying, structuring, documenting and coordinating with the prospective Participants during the initial phase of financing till Commitment letter and consortium agreement is signed.