Structured Finance

Innovation in structured credit products

From pioneering the first-ever structured finance product (popularly known as NCDs) to executing complex structured credit transactions, members of the team have an exceptional understanding of the regulatory, insolvency, litigation and tax issues that are most critical to navigate the private debt investment cycle for large institutional players. Our unique selling proposition is the ability to devise innovative cross-border structures, which integrate the commercial requirements of each transaction with the complex regulatory and tax framework of India. We understand the opportunity as also the risk appetite of our clients that include special situation funds, large debt funds, banks, non-banking financial institutions and venture debt investors.

Our team members have worked on a wide array of credit transactions including mezzanine debt, venture debt, foreign currency convertible bonds, structured debt investments, special situation investments and securitisation transactions. We approach transactions with a deep understanding of the Indian regulatory, tax, litigation and insolvency framework. Members of our team have contributed significantly to policy advocacy and brought about regulatory change and mutual trust to facilitate the investment environment.

Our areas of expertise in the private debt domain are as follows:

  • Primary Credit Investments – end-to-end assistance in structuring and execution of credit investments, including plain-vanilla NCD transactions, mezzanine structures, promoter financing, project financing and cross-border collateralization structures.
  • Credit Secondary Investment in Standard Assets – assignment of standard assets to securitization trusts, identifying tax-optimal entry routes for investment into PTCs (pass through certificates), and structuring and implementing various hybrid securitization structures to ensure collateral priority, repayment and similar factors.
  • Credit Secondary Investment in Sub-Standard Assets – assignment of NPAs and sub-standard assets to securitization trusts, set-up of and investment by ARCs and issuance of security receipts.
  • Credit Platforms – setting up credit platforms (traditional fund structures and managed accounts) in investing directly or through NBFCs for investment across different sectors such as real estate, infrastructure (roads and renewables), logistics and airports.
  • Enforcement – advise extensively on Insolvency and Bankruptcy Code related matters and enforcements without court intervention (including a most recent enforcement of security interest in one of the largest real estate companies), and appear in enforcement litigation with the assistance of empanelled of counsel.

Our structured finance team specialises in high yield private debt transactions (primarily foreign debt), mezzanine debt infusions and securitisation of different asset classes. Our team members have designed some of the most innovative products and structures for large institutional investors and global sponsors investing in structured credit products.

Representative transactions

  • Members of the team have assisted several funds, including the Government of Singapore (GIC), Brookfield Asset Management, Proprium Capital Partners, Xander Group and Aditya Birla Real Estate, in private debt and structured finance transactions and also with setting up several special situations and distressed asset funds.
  • We have acted for US Ex-Im Bank on a limited recourse financing of a photovoltaic solar generation project developed under the Jawaharlal Nehru Solar Mission.