Rare ARC has raised US$14.5 million in structured debt financing

Rare Asset Reconstruction Limited (Rare ARC) has successfully raised US$14.5 million in structured debt financing.

Rare ARC is a securitization and reconstruction company. Its services include the acquisition of non-performing assets and non-operational accounts, resolution and direct acquisition.

The company aimed to raise capital to provide a bank guarantee for security receipts (SRs) to be issued by Rare ARC to the lenders of Rainbow Paper Limited for debt assignment.

Oaklins’ team in India helped Rare ARC structure the transaction by offering optimum security coverage to the lender, as well as leveraging the available unencumbered cash flows of the company. Given that Rare ARC has a proven track record of successfully restructuring assets, as well as balanced books without any external secured debt, Oaklins’ team in India was able to conceive and implement a structure for raising debt capital at company level secured with various committed cash flows. As a result, the lender underwrote a performing and growing business with predictable cash flows, sound collateral backing and a promoter profile. This demonstrates Oaklins’ Indian team’s deep-rooted domain expertise in optimized fundraising for businesses with a stable cash flow.