Using proper funding mix to bridge infrastructure gap

The provision of appropriate infrastructure ranging from good road network and bridges to public utilities is a fundamental driver of economic growth, and the demand for such services is expected to surge in the next few years.

Unfortunately, the allocation of funds for infrastructural projects is insufficient to cope with this projected increase in demand.

A recent report released by Moody’s Investors Services, a leading global risk assessment firm, indicated that Nigeria needs to spend about $3 trillion over the space of 30 years to bridge the country’s infrastructural gap.

According to the report, significant financing from the private sector and multilateral needed to address Nigeria’s infrastructure deficit, as it is behind peers in other emerging markets, and will require significant investments to bridge its infrastructural gap.

A possible solution, with significant potential, is to boost private-sector engagement in infrastructure development. Over the past decades, the contribution of the private sector has increased.

While the involvement of private investors and operators in infrastructure comes with clear benefits, some obstacles still need to be overcome, to ensure the success of the public-private collaboration.

Against this background, an investment banking and project development firm, Restorium Capital, has expressed its readiness to provide top-notch services by linking prospecting businesses, governments and corporate institutions with various developmental and investment funds out in Europe, America, Asia and worldwide.

At a virtual meeting held at the weekend, the Managing Director/Chief Executive Officer, Omotayo Adeola, said the company which currently is based in Dublin, Ireland, and Lagos plans to bridge the gap in infrastructure financing in Nigeria by providing trade finance and credit enhancement services for businesses, importers, manufacturers among others.

According to her, Restorium Capital will achieve this through the issuance of letters of credit, SBLC, bank guarantees, Proof of Funds (POF), advance payment guarantees, performance bonds and other SWIFT services from its network of over 50 world banks without collateral.

In addition, she said the company also provides project and business financing services to Private and Public companies including Public-Private Partnerships (PPP), through debt, equity, mezzanine or a mix of funding solutions including the refinancing of existing loans, purchase of existing facilities, restructures among others.

She said the company currently has funds available from $5 million to $500million for humanitarian projects in the areas of social housing, agric business, renewable energy, and waste to wealth projects among others.

She said Restorium Capital also undertakes debt funding for private companies and PPP projects straight loan against interest from $20 million and above, and private equity funding deal size ranges from $15 million and above.

“We specialise in providing financial advisory, and related services across project financing, capital raising and structured trade finance services to a diverse clientele base.

“Our activities revolve around positively impacting the African economies by providing the needed investments required to jumpstart various fields of endeavours, raising funds from a broad network of investors, banks, and our partners and promoting worthy long term business relationships,” she said.

On how to hedge against foreign exchange risks and rising inflation, Adeola said the company utilizes hedging tools available in each country to derisk the projects.

She said the company is currently working with a money transfer and currency company in the United Kingdom that takes new foreign exchange transactions in exchange to local currency, adding that the company would commence funding for SMEs and women entrepreneur projects by the third quarter of the year.