Structured debt finance is a very complex financial tool offered to borrowers with certain specific needs. It usually includes derivatives of debt instruments like syndicated loans, collateralized bond obligations, mortgage obligations, collateralized debt obligations and hybrid securities. When a simple loan doesn’t meet the borrower’s requirements, these complex financial tools are implemented for operational needs.
As the name implies, it is a debt specifically structured or tailored for the borrower. Structured debt finance has unusual options like introducing incentives for the borrower to do business with the lender. It has helped many sectors like real estate, healthcare and corporate markets over the years and has a strong bond with credit enhancement. This type of finance is not suitable for traditional financial products because structured financing describes both debt and equity that flow into the company stream. If not properly managed, it could affect the value of the company.
We offer Structured Financial Solutions to corporates that have complex financing needs that don’t match with conventional financial products.
Since structured debt finance considers the cash flows rather than the asset base, it can be a really useful tool for many corporates with low asset base but highly impressive business operations and cash flows.