When our clients are in need of large financing for their Greenfield or BMRE ventures, they mandate us to raise the required fund on their behalf, using a variety of financial instruments, such as term loan, lease, working capital, preference shares, securitized bonds etc. FAS Finance, as the lead arranger, raises the fund on a best efforts basis by arranging a syndication of banks and non-banking financial institutions.
In a syndication deal, the client has to maintain relationship only with the lead arranger, instead of a number of financial institutions, thus making the process more simple and efficient.
The entire process is usually completed within 3-6 months. However, this may vary based on the complexity of the deal.
FAS Finance has so far participated in 1 syndication deal of Infinity Ltd. with an investment of Tk 3.00 cr whereas IIDFC was the lead arranger to raise fund to the tune of tk 430.00 crore.
FAS Finance can play the role of both an arranger and an agent in a syndication deal.
As a Lead Arranger, FAS Finance is mainly involved in:
- Conducting due diligence of the client
- Preparing Information Memorandum (IM)
- Distributing IM to the targeted financial institutions
- Negotiating with prospective financiers
- Coordinating legal and regulatory requirements for deal closing
- Preparing legal documents and coordinating disbursement
As an Agent, our responsibilities include:
- Acting as the contact point between client and financiers
- Coordinating subsequent repayment by the client
- Coordinating completion, maintenance and required amendments of related documents
- Coordinating compliance of various covenants of the facility
- Structuring periodic renewal of the pricing of the facility
- Resolving various issues related to the deal