Challenges in the proposal

• Timelines: Company required to submit PBG to project authorities within a timeline of 28 days from the receipt of LOA for which the financial tie up required to be completed within 28 days.
• Sole Banking: For project specific funding of Rs. 1450 crores, introduction of new Bank and funding under sole banking was challenging and at the same time it was not possible to meet the stringent time line, if multiple banks were approached under existing consortium arrangement Company.
• Pricing/Concessions/Collateral/Guarantee: Despite stringent timelines, company was also bent upon to get various concessions in interest rate, commission, processing fees, reduced margins on FB, NFB & TL limits, Nil collateral and Nil PG & CG.
• Covid Impact: In view of not complying to certain critical benchmark parameters (due to impact of covid on FY 21 financials), we were facing the challenge of getting various deviations under the EPC policy from the bank’s competent authority.

Benefits to the client/Impact we created:

• Successful in getting the sanction within 35 days and on time disbursement under Sole Banking from new lender in line with company’s request (with no modification required).
• Negotiation for various deviations from EPC policy and other terms & conditions as per client’s requirement.
• Raised WC limits & Term Loan at competitive cost of funds, Lower margins for FB, NFB limits & Term Loan with Zero Collateral and Nil Personal and Corporate guarantees.
• Client was able to submit the Performance Bank guarantee within acceptable time permitted by the authority, which mitigated the risk of getting its award of cancellation of the project.

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