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Debt Portfolio Optimization

Debt Portfolio Optimization

Optimizing a company’s debt profile is essential for aligning with financial goals and ensuring sustainable growth. It involves enhancing liquidity by maintaining an optimal balance between short-term and long-term debt to meet short-term obligations without stress, while minimizing costs through refinancing high-interest debt, negotiating better terms with lenders, and ensuring tax efficiency. Achieving a prudent capital structure with the right mix of debt and equity minimizes the cost of capital and enhances shareholder value, ensuring financial stability. An optimized debt portfolio also allows for efficient capital allocation, freeing up resources for strategic initiatives with high returns.

Additionally, risk management is a key benefit, as interest rate and currency risks can be mitigated or transferred through hedging and currency matching strategies. Flexibility is another advantage, enabling the company to capitalize on growth opportunities without compromising stability. Furthermore, a well-optimized debt profile can lead to improved credit ratings, reducing borrowing costs and enhancing access to capital markets. Overall, debt optimization is a strategic, continuous process that ensures debt alignment with financial goals, supports growth, and effectively manages risks. At PRC Consultancy Private Limited, we specialize in debt optimization strategies tailored to maximize benefits while minimizing costs and risks.

Company Presentation

Benefits of Optimize Debt

PRC's Step Wise Approach to Debt Optimization​

Working Capital Limits

 

Forex Management Limits

Project Financing – Green/ Brown Field

Acquisition Financing

Bill Discounting Limits

 

Expansion Financing

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Debt optimization as process

List of documents required for bank loan

Factors considered by lender for lending

Different available debt funding options

Role of collateral in debt funding

Key factors emphasis by borrowing

Let PRC be your partner in optimizing debt

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Capital Market Assessment

Timing is critical in the capital market, where achieving full subscription, preferably at par or at premium, is a key requirement that demands the right strategy and market conditions. At PRC, in collaboration with our associates, we assess key aspects of your organization that will play an important role when going public.

The orientation of investors differs significantly from that of lenders or credit analysts. Similarly, the perspectives of sell-side and buy-side analysts vary. Maintaining thoroughness and independence, PRC ensures an in-depth analysis from the perspective of investors. This helps identify positives and concerns that will be considered by both retail and institutional buyers.

Our assessment assists organizations in developing strategies to mitigate these concerns and effectively highlight their strengths in the capital market.

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Bank Loan Rating Pre-Login Assessment:

PRC BLR Pre-Login Assessment is a comprehensive and research-based report that delves deep into the intricacies of bank loan rating optimization. Here's how we ensure a thorough assessment:

In-House Models and Templates: We have developed proprietary models and templates based on the credit methodologies followed by credit rating agencies. These tools enable us to conduct precise and accurate assessments tailored to each client's unique profile.

Market Research and Benchmarking: Our team continuously tracks outcomes across the rating universe and performs tentative benchmarking exercises. This allows us to gauge where our clients stand relative to industry standards and identify areas for improvement.

Incorporation of External Factors: We meticulously document and incorporate critical external factors such as market trends, regulatory changes, economic conditions, and peer performance. This ensures that our assessments are holistic and take into account all relevant influences.

Financial and Soft Points Assessment: We analyze financial performance and position using comprehensive financial statements. Additionally, we delve into soft points such as future prospects,

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Debt Profile Assessment

Securing funds from a lender is crucial, but obtaining them on favorable terms is equally vital. At PRC, we conduct thorough assessments of your working capital needs and identify your credit strengths and weaknesses. With our deep understanding of the debt market and regular interactions with bankers, we are well-equipped to advise you on the best terms available and from which potential lender.

Our team considers various factors such as interest rates, bank charges, margins, collateral coverage, and repayment tenure to provide you with a clear picture of what can be achieved currently. Armed with this information, your management can make informed decisions about selecting the right lender and work towards optimizing the terms further.

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