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Covalent: Term Loan for Expansion and Modernization
內容大綱
Covalent Laboratories Private Ltd. is involved in the manufacture of active pharmaceutical ingredients and bulk drugs in Hyderabad, India. In March 2012, the company added a new manufacturing plant and was in the process of obtaining regulatory approvals for its products from the U.S. Food and Drug Administration and the European Directorate of Quality of Medicines. Anticipating good growth, the company approached the Commercial Development Bank of India in June 2014 for sanction of a term loan of INR350 million over seven years towards expansion and modernization of its existing manufacturing facilities, including the construction of a captive power plant and effluent treatment plant. As the proposed financial assistance is long term in nature and the company is a new client with average financial strength, the head of the bank's Corporate Banking Department faces a dilemma. He has asked a credit analyst to research the financial performance of the company and to assess the financial viability of and identify the risks in the proposal.