Debt & Covenant Monitoring Services

Overview

What We Do

We provide continuous oversight of every debt obligation, from disbursement to closure. A digital monitoring platform combined with an expert team covers term loans, NCDs, project finance and External Commercial Borrowings (ECBs). Gradivus monitors and reports; the lender decides.

What We Monitor

Covenants

Financial and non-financial covenants

We track financial and non-financial covenants against the thresholds agreed in the transaction documents, and flag potential breaches early so that lenders can act in time.

Payments

Interest and principal servicing

We track interest and principal schedules and the servicing status of each obligation, including delays and shortfalls.

End-Use

Utilisation against the agreed purpose

We monitor the utilisation of funds against the purpose agreed at sanction or issuance, based on the information and certifications made available to us.

Security

Collateral and security cover

We track collateral, security cover and the related documents, including creation, perfection and periodic valuation where applicable.

Conditions

Precedent, subsequent and periodic submissions

We track conditions precedent, conditions subsequent and periodic submissions due from the borrower or issuer, with reminders and follow-ups.

Exceptions

Escalated and tracked to resolution

Deviations are identified, escalated under the agreed protocol and tracked until they are resolved, with a full audit trail.

Compliance Support

Compliance support for debt securities and corporate loans from banks and financial institutions:

Periodic Disclosures & Certifications - Coordination of the periodic disclosures and certifications required under the transaction documents and the applicable regulatory framework.
Trustee, Exchange & Intermediary Coordination - Working with debenture trustees, stock exchanges, depositories and other intermediaries to keep submissions complete and on time.
Compliance Calendars & Trigger Tracking - A maintained compliance calendar for each obligation, with tracking of event-based triggers so that nothing falls through the gaps.

Who We Work With

Banks, NBFCs & FIs - Portfolio visibility with borrower-level monitoring.
Investors & Lenders - Structured oversight of exposures after disbursement.
Foreign Lenders - Monitoring and administration support for ECBs.
Issuers & Borrowers - Disciplined servicing and compliance across the life of the debt.

How an Engagement Works

Onboard the facility - We map the transaction documents into covenants, schedules, conditions and reporting obligations.
Set up monitoring - Obligations are configured on our monitoring platform with owners, due dates and thresholds.
Collect and validate - We collect periodic information from the borrower or issuer and check it for completeness and consistency.
Report and escalate - Lenders receive structured periodic reports; exceptions are escalated under the agreed protocol.
Track to closure - Monitoring continues until the obligation is fully repaid and the security is released.

Technology for Scale, People for Judgement

Our monitoring platform keeps every covenant, payment and condition on a single timeline, while our team brings judgement to the exceptions, delivered as one service. Monitoring is performed on the information made available to us, with defined reliance and limitation parameters.

Scope and Limitations

Services are provided as per the agreed scope, and agency roles apply only where Gradivus is specifically appointed. We monitor and report; decisions on waivers, enforcement or restructuring remain with the lender.

Frequently Asked Questions

What is debt covenant monitoring?

Debt covenant monitoring is the ongoing tracking of a borrower's compliance with the financial and non-financial covenants in a loan or debt instrument, such as leverage or coverage ratios, reporting obligations and restrictions, so that lenders are alerted to potential breaches early.

Which debt instruments does Gradivus monitor?

Term loans, listed and unlisted non-convertible debentures (NCDs), project finance and External Commercial Borrowings (ECBs).

Does Gradivus take decisions on behalf of lenders?

No. Gradivus monitors and reports; the lender decides. Waivers, enforcement and restructuring decisions remain with the lender.

Does Gradivus support compliance for listed debt securities?

Yes. We support periodic disclosures and certifications, coordinate with trustees, exchanges and intermediaries, and maintain compliance calendars with trigger tracking.

Debt Monitoring & Compliance