Our structured finance practice recognizes the unique challenges balance sheets in our markets face in raising capital for CAPEX, working capital and other complex financing requirements. Traditional balance sheet lending is drying up and has become unattractive to many financiers in the sub-region. We note that large corporates struggle intermittently to meet their funding requirements as a result of misaligned balance sheets resulting from temporary blips in their performance over short periods.
Collateralized lending has become unattractive to lenders who have appetite for African debt.
Over the years we have gained very deep understanding of the unique strengths, quality and credibility of cash flows of large local and multinationals firms, as well as public enterprises with huge capital requirements. We have therefore engineered innovative approaches to raise capital for these large private corporates and public institutions utilizing the underlying cash flows of contracts and offtake agreements as the principal security.
We have successfully adopted this off-balance sheet lending approach to assist major private and state-owned corporates to ring-fence various cash flows to raise debt in excess of half a billion US dollars in the last couple of years.