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Thread: Accessing the International Debt Capital Markets , international capital market

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    Default Accessing the International Debt Capital Markets , international capital market

    Accessing the International Debt Capital Markets

    Agenda


    Accessing overseas markets: A necessity, not a luxury
    Overseas Debt Capital Markets
    The various overseas fund raising options
    -Syndicated Loans
    -Convertible Bonds
    -Eurobond
    -Other Funding Options
    -Medium Term Notes
    -Project Finance
    -Floating Rate Notes
    -Accessing the US Market
    Issue Process and Schedule

    Accessing Overseas Markets: A Necessity, Not a Luxury

    India’s Capital Requirement is Huge

    Large capital requirements expected in the infrastructure and power sectors

    Rapid expansion plans of Companies.

    Domestic markets are likely to prove insufficient to absorb the total borrowing requirements

    Government trying to attract foreign capital

    Imperative that top rated firms tap the international markets and establish benchmarks for other

    Indian companies to follow

    Why Should Your Company Go Overseas ?

    Diversify investor base (by both type of institution and geographic location)
    -Saturation of limits with the Indian long-term investors
    -Increase in funding costs
    Profile building (both international and among peer group)
    Preserve precious on-shore bank lines
    Flexibility in terms of shifting between fixed/floating rates and switching between currencies
    Lower administrative time required for debt servicing
    -Helps minimise time commitment from management
    Refinance existing debt at competitive cost
    Lengthen debt maturity profile -10 years and longer
    Create benchmark for future capital markets’ financing


    Overseas Debt Capital Markets

    Definition

    The debt capital market is the market for the issue and trading of long-term debt securities (normally more than 3 years tenure)
    Classified as per maturity
    -Up to 5 years: Short term instruments
    -5 to 10 years: Medium term
    -More than 10 years: Long term
    Primary Market-for first issue of securities
    Secondary Market-Trading once issued

    Factors that Affect Access to Capital

    Track record with investors
    Credit ratings and financial position
    Risk appetite of investors
    Information about the company
    Do investors know and trust you?
    The Business Cycle
    Transactions costs
    Country and Market
    Amount of money desired
    Ability to monitor use of capital
    Can investors track what’s being done with their money?







    Source NIRC-ICAI
    Attached Files Attached Files

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