Company Background:
A Pune-based real estate company established in 2022, has three RERA-registered projects
Problem:
The company faced a challenge with its BB- credit rating, which resulted in high-interest debt, necessitating the need for a 3-notch upgrade to access lower interest rates.
Solution:
FinMen Advisors conducted a thorough assessment, spotlighting the company’s strengths such as its advantageous location, robust bookings, and sufficient confirmed receivables to complete the project. They also emphasized the presence of credit enhancements like DSRA and escrow to effectively mitigate risks.
Impact:
The successful attainment of a BBB- rating enabled the company to refinance its debt at a significantly lower rate of interest. This move led to substantial annual savings of Rs.100 crores, thereby enhancing the company’s financial stability and prospects.
