Tailored for select developers, structured financing offers a unique advantage by providing a portion of the facility as a ‘take-out’ fund, which promoters can utilize freely, subject to oversight mechanisms. Non-convertible debentures are the preferred instrument for this product. Alternatively, senior debt provides borrowers with favourable interest rates while granting lenders priority claims on the project. Mezzanine debt, on the other hand, allows lenders to claim equity in the borrower’s assets in case of default, offering enhanced security in fluctuating markets.

Non-convertible debentures (NCDs) are the preferred instrument for this product, offering flexibility in structuring repayment schedules and interest payouts. These instruments appeal to institutional investors and family offices seeking fixed returns with relatively low risk when backed by viable, approved projects.

Alternatively, senior debt is often used to secure lower interest rates, given its top-tier claim on the borrower’s assets and cash flows. It is ideal for developers with strong project fundamentals who are seeking predictable funding structures with minimal equity dilution.

Mezzanine debt, meanwhile, serves as a hybrid option, bridging the gap between equity and debt. Though it carries higher interest costs, it offers lenders the right to convert to equity in case of default, making it an attractive option in volatile market conditions where asset-backed security becomes essential. For developers, this structure provides access to additional capital without immediately giving up ownership control.

Structured financing not only ensures liquidity during critical phases but also allows developers to optimize their capital stack, improve cash flow management, and retain strategic control over project execution.