Corporate Finance

ICICI Bank has harnessed new technologies and thought processes to introduce numerous products and services in the area of Corporate Finance to suit your needs. The products can be broadly classified into:

• Overdrafts
  A standby line, where interest is charged only on the amount drawn and secured by a fixed deposit .
• Demand Loan
  Short-term loans to meet working capital requirements.
• Revolving Credit Facility (RCF)
  A committed facility for a fixed period, available for drawing at any time before the final expiry date.
• Term Loan (fixed or floating)
  A credit facility to meet medium to long-term fund requirements.
• Receivables Financing or Factoring
  With or without recourse financing against security of account receivables.
• Bridge Loan
  A short-term credit facility to meet temporary fund requirements.

Overdrafts

We offer overdraft facility against the security of your Foreign Currency Fixed Deposits.

An overdraft is a standby line, where interest is charged only on the amount used in the credit line. There is no need to uplift your Fixed Deposit when there is a need for cash. The facility can also be drawn in a currency other than the deposit currency.

The overdraft facility can also be offered against the security of shares, Government securities or other liquid financial instruments.

Demand Loan

We offer short-term loans to meet your working capital requirements. This is an advance for specific periods of one year or less, where amounts repaid may be re-borrowed, at ICICI Bank's discretion. The loan is repayable on demand. You can either make interest payments and principal repayments at the end of each advance, or roll over the principal with a new contracted rate.

Revolving Credit Facility (RCF)

We offer a Revolving Credit Facility to meet your working capital requirements. RCF is a committed facility for a fixed period, and is available for drawing at any time before the final expiry date. RCF would be useful for meeting your short term needs and could also act as a source for your long-term working capital. We offer the facility for a wide range of tenures from 3 months to 5 years.

You can either make interest payments and principal repayments at the end of each advance, or roll over the principal with a new contracted rate. A commitment fee applies to this facility.

Term Loan (fixed or floating)

We offer term loans to meet your medium- to long-term fund requirements. This is an advance granted by the Bank for a fixed term of more than one year. It is a non-revolving facility with a pre-determined expiry date. The facility is a committed facility and a commitment fee applies on the undrawn amount. The amount once repaid cannot be redrawn. The interest rate can be variable, pegged to a base rate or fixed upfront.

Receivables Financing or Factoring

We offer factoring as an alternate means of raising working capital finance. Factoring involves the financing of accounts receivables. You can raise working capital by selling us your accounts receivable. ICICI Bank would grant you an advance, based on the amount of accounts receivable. Your customers settle the accounts receivable by paying ICICI Bank directly. No other collateral besides the accounts receivable is required for this facility.

Two variants of this product are available:

• With Recourse Financing: The advance is offered against the security of your accounts receivable, so the amount appears as a loan in your books. You would be liable to repay the advance even if your customer does not make the payment.
• Without Recourse Financing: Here, we purchase the accounts receivable from you, so the receivables no longer appear in your books. We would have no recourse to you if your customer defaults in payment.

Bridge Loan

We offer short-term credit facilities to meet temporary fund requirements. A bridging facility (e.g. Bridging Overdraft, Bridging Term Loan, etc.) is a temporary facility for a specific purpose, which will be refinanced by another facility to be granted either by ICICI Bank or another financial institution, or a readily identifiable source of funds.