GuarantCo Ltd. has provided credit enhancement (by way of a partial guaranty) to the debenture trustee in relation to 20,000 rated, listed, senior, secured, redeemable, transferable, non-convertible debentures, with an aggregate nominal value of ₹200 crore, issued by Vivriti Capital Limited.
TT&A acted as the Indian Law Counsel for GuarantCo on this transaction,
The transaction team consisted of Ambarish Mohanty (Partner), Pallavi Meena (Partner), Ankita Mandal (Managing Associate), and Daksh Middha (Associate).
Addleshaw Goddard LLP acted as the English Law counsel for GuarantCo.
Trilegal acted as the counsel to Vivriti Capital Limited and the debenture holders.
The guarantee, which is unconditional and irrevocable, covers 65% of the issuance, including outstanding principal and 90 days of interest. This enhancement has enabled the NCDs to secure a 'CRISIL AA+ (CE)/Stable' rating. The NCDs have a 70-month tenure with monthly repayments and are backed by a structured security package that includes a Debt Service Reserve Account (DSRA), an escrow mechanism for loan receivables with at least 1.10x cover, and a first-ranking charge over a specific pool of receivables. The move is aimed at boosting investor confidence and expanding Vivriti’s access to capital for lending to mid-market enterprises.
GuarantCo is a development finance organization that provides guarantees to lenders, primarily banks, to support infrastructure projects in developing countries. These guarantees act as insurance, mitigating the risk of loan defaults and encouraging lending for essential projects like power, transportation, water, and telecommunications.
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