1. Ordinary shares

2. Ordinary shares represent ownership position as the shareholders are the legal owners of the company

3. Features - Perpetual capital (no maturity date) - Claims on income - Claims on assets - Right to control - Voting rights - Pre-emptive rights - Limited liability

4. Pros and cons - Permanent capital - Borrowing base - Dividend payment discretion

5. Disadvantages - Cost (Tax deductibility / dividend tax) - Earnings dilution - Ownership dilution

6. Route - Public issue - Private placement - Secondary market operation

7. Debentures

8. Debentures are long term promissory notes for raising loan capital

9. Features - Interest rate - Maturity - Redemption - Sinking fund - Buy back (call) option - Indenture - Security - Yield - Claim on assets and income

10. Types of debentures - Non-convertibles - Fully convertibles - Partially convertibles

11. Pros and cons - Less costly - No ownership dilution - Fixed payment of interest Reduced real obligation

12. Limitations - Obligatory payments - Financial risk - Cash outflows - Restricted covenants

13. Preference shares

14. Preference shares are hybrid instruments – ordinary shares and debentures

15. Features - Claims on income and assets - Fixed dividend - Cumulative dividends - Redemption - Sinking fund - Call feature - Participation feature - Voting rights - Convertibility

16. Pros and cons - Riskless leverage advantage - Dividend postponability - Fixed dividend Limited voting rights

17. Limitations - Non deductibility of dividend - Commitment to pay dividend

18. Term loan

19. Term loans are long-term debt. This type of financing is also called project financing

20. Thank you