Project Finance & Debt Syndication

Project & Infrastructure Financing

Driving strengths from its institutional relationships and the position in this segment, SPA Merchant Bankers Limited has been acting as arranger for syndication of rupee as well as foreign currency loans for various corporates in the public and private sectors.

Successful execution of mandates for arranging corporate finance has helped the Company to earn confidence from its clients and generated further referrals. The Company has the pleasure to be associated with some of the leading corporates of Indian business world and has executed mandates for syndication of long tenure term loans aggregating over INR 100 Bln.

Some of the big ticket syndication mandates include financial closure (debt portion) for:

  • INR 54 BLn Gas Cracker Petrochemical Complex at Assam for Brahmaputra Cracker & Polymers ltd (BCPL) a joint venture company of GAIL,OIL NRL & Govt. of Assam,
  • INR 21 Bln 520 MW Omkareshwar HEP in Madhya Pradesh by NHDC,
  • INR 43 Bln CAPEX funding for various ongoing power generation, transmission & distribution projects in State of Tamil Nadu for TNEB,
  • INR 20 Bln CAPEX funding for Transmission & Distribution projects in State of Punjab for PSEB,
  • and various other Government and Private corporate houses.

Bloomberg : India Domestic Syndicate Loans ranking 2011
Underwriter League Tables

India Loans Mendated Arranger (INR)
1/1/11 - 6/30/11 2011 2010 MKT SHARE CHG(%)
State Bank of India 1 56.3 721 34 1 46.1 10.2
Axis Bank Ltd 2 20.3 261 14 3 18.0 2.3
IDBI Bank Ltd 3 9.9 127 7 2 21.7 (11.8)
IDFC Capital Ltd. 4 3.8 49 4 5 4.0 (0.2)
ICICI 5 2.7 34 2 4 9.1 (6.4)
Kotak Mahindra Bank Ltd. 6 1.7 22 2 - - -
Citi 7 1.5 20 1 - - -
RBS 7 1.5 20 1 - - -
Yes Bank 9 1.4 18 3 8 0.2 1.2
Bank of India 10 0.6 8 3 9 0.2 0.4
ING Groep NV 11 0.1 2 2 10 0.1 -
SPA Merchant Bankers Ltd. 12 0.0 1 1 12 0.1 (0.1)
TOTAL   100% 1,281 66 1437 100%  

Private Placement of Bonds

SPA ventured into the activity in the financial year 2003-2004 and has been able to compete a place in leading top 10 merchant bankers registered with S.E.B.I. Syndicated volumes SPA has been able to derive in this core activity averages approx INR 100 Bln since inception. (Source: PRIME Database)

Bloomberg for calendar year 2008 underwriter league table India Domestic Bonds has ranked SPA at 11th position with mobilization of INR 33 Bln.

TAXABLE BONDS : SPA has to its credit historical benchmarks set by placing syndicated long term debt instruments at low coupon rates for instance in State Government guaranteed category : seven year taxable bond issuance of INR 4.05 Bln by TNEB at coupon rate of 8% annual payment and Non guaranteed category : taxable lower tier II eight year three months bond issuance totaling INR 2 by Allahabad Bank at coupon rate of 5.90% annual payment.

INFRASTRUCTURE BONDS : SPA finds distinction of being ranked at Numero Uno position in financial year 2005-2006, 2007-2008 and 2008-2009 for its contribution in syndicating funds through infrastructure & capital gains bonds. (Source: PRIME Database)

TAX FREE BONDS : SPA holds to its credit historical low coupon tax free debt placement by successfully syndicating INR 0.5 Bln ten year instrument for HUDCO carrying annualized coupon rate of 5.15% and INR 0.42 Bln seven year instrument for CMWSSB carrying annualized coupon rate of 5.20%.

Perennial relationship and focus on quality execution by SPA team has brought laurels from being associated with across four directions of closely working with almost all scheduled commercial public and private sector banks for their Tier-I as well as Tier-II borrowing requirements like PNB, Canara Bank, Bank of Baroda, Central Bank of India, Union Bank of India, Allahabad Bank, Andhra Bank, Bank of Maharashtra, IOB, United Bank of India, UCO Bank, IOB, Axis Bank, Bank of Rajasthan etc., engagement in borrowing programs of public sector entities like SAIL, PGCIL, NHAI, NCRPB, NHDC, NTC, ITI, MECON etc., being attached as arranger to Development Financial Institutions like NABARD, REC, PFC, IDBI, SIDBI, NHB, HUDCO etc., association with the borrowing program of State undertaking’s like TNEB, CMWSSB, KSFC, APTRANSCO, APSFC, APWRDC, PSEB, HPSEB, HPIDB, KTDFC, KPUIDC, WBIDFC, WBFC etc. amongst host of highly rated private corporates and business houses.

Public Issue of Debt

SPA has been closely associated with public issues of debt by IDBI and accredited of being;

  • One of the largest mobilisor in Public Issue of IDBI flexi Bond Series 19 having mobilized 25% of the issue size of INR 6 Bln.
  • As co-managers to Public Issue of IDBI flexi Bond Series 20 mobilised INR 1.2 Bln being 15% of the total issue size, accredited one of the largest mobilisor in the issue.
  • As co-managers to Public Issue of IDBI flexi Bond Series 21, banked INR 1.5 Bln.

Public & Fixed Deposit Marketing

SPA with direct selling network of 43 branches across Indian subcontinent and 2000 sub broker network has been aggressively raising funds through public in fixed deposit programs of state entities as well as private corporates.