Structured Finance

Kaizen offers its clients specialized services for their unique funding requirements that are normally not met through regular banking products. Such structured products are:

• Acquisition Funding:  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 advise on acquisition financing through appropriate financing structures.

• Mezzanine Funding:  It is a subordinated debt or preferred equity instrument that represents a claim on a company's assets which is senior only to that of the common shares. It can be structured either as debt or preferred stock and can be completed through a variety of different structures based on the specific objectives of the transaction and the existing capital structure in place at the company.

• Promoter Funding: The financing is usually done against collateral of shares held by the promoter or Group Company for a period varying from 6-36 months. The transaction helps in unlocking the value of promoter shareholding by raising additional funds. It is mostly done to enable promoters to raise their stake in the company.

• Lease Rent Discounting: This facility is sanctioned based upon the rent to be collected over the period of the lease. The agreement is between the borrower and lender with major source of repayment from the lease rent that is directly deposited with the lender under an escrow mechanism and not with the borrower.

• Agri Finance / Warehouse Receipt Financing : We also arrange short term working capital loans in the form of Purchase Bill Discounting for our corporate clients using Agri Commodity as one of raw material input. We also arrange Line of Credit for short term loans against agriculture commodities stored in approved warehouse for various approved Agri Commodities.  This helps in meeting short term working capital requirements of corporates engaged in manufacturing/ trading of Agri Commodities.

• Equipment Financing: Funds are raised to acquire equipments for productive use where the underlying equipment itself is provided as security. Such financing usually carries a lower rate of interest than the rate charged by senior lenders. Promoter’s contribution in the financing arrangement is usually lower as compared to margin requirements normally stipulated in project funding.

• Loan Against Property (LAP): Short to medium  term fund raised for meeting mismatch both of short and long term in nature by providing property as security.

•  Inter Corporate Deposit (ICD): Deposits made by one company with another company usually for a period of 3-6 months at a fixed rate of interest. These deposits are generally considered by the borrower to solve problem of short-term capital inadequacy.