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Products & Services
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Arranging Services
IDCOL arranges both debt and equity financing for eligible infrastructure
projects. It has arranged equity and debt financing for a satellite
earth station project, long term loan for a 11.6 MW power project,
two land ports and coarranged financing for a telecom project.
Potential sponsors/developers of an infrastructure project may approach IDCOL for providing loan and arranging finance for their projects. Sponsors are required to mandate IDCOL in writing to arrange finance for them. After initial review of the project, IDCOL analyzes the financial need of the project and determines whether the project needs additional equity with that proposed by the sponsors to make the project bankable. On the basis of the assessment, IDCOL initiates process for arranging necessary finance for the concerned project.
IDCOL helps the sponsors prepare the financial model or base case scenario for the project and the Information Memorandum to be circulated among the prospective financiers. IDCOL enters into confidentiality undertaking with the sponsors as well as the participant financiers regarding maintenance of proprietary information of the sponsors and the project company.
In addition to its in-house appraisal of the project, IDCOL in
consultation with the sponsors/project company and the syndicate
members requires the sponsors to appoint common technical advisor
(TA) and legal counsel to conduct independent due diligence and
feasibility studies of the project. The scopes of the work for the
TA and common counsel need to be approved by IDCOL.
IDCOL itself participates in the project for which it arranges financing.
IDCOL’s arranger's fees are competitive and mutually negotiable,
never exceeding the existing market rate.