Refinancing

Refinancing is a process companies or individuals undergo to replace outstanding /or maturing debt or to alter the composition of their outstanding debt. Refinancing can be a voluntary process that borrowers undertake in order to optimise their debt service, redemption or seniority profiles, or an involuntary process forced on debtors by creditors, including through formal legal processes. In essence, the process is similar insofar as it involves paying off existing debt and replacing it with new debt that meets the rationales of the refinancing.