The Asset magazine’s Asia Infrastructure Finance Leaders Dialogue: more project preparation needed
As Logie Group, Andrew Kinloch offers specialist advice on infrastructure finance in Asia
As Logie Group, Andrew Kinloch offers specialist advice on infrastructure finance in Asia
Andrew joined a timely roundtable at the Four Seasons in HK.
His contribution was to ask why, with so much demand for, and so much supply of, capital, the volume of deals actually closed was not, in fact, much higher? The answer, as always of course, is that Projects first need to be Properly Prepared, approvals processes made more transparent / consistent and support offered both for SOEs acting as offtakers to projects and for the revenue line of individual projects – all of which is the responsibility of host governments.
China’s Belt & Road Initiative brings huge further funding – potentially – which may take more risk than the plentiful dry powder held by financial institutions but this does not address these blockages to deal flow. Projection preparation facilities from the IFC, ADB and more recently the AIIB can pay for such advice and Andrew can provide it.