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Client
Relations
Fundmores Merchant Bank
Portal (MBP) is the intended virtual marketplace where the
capital markets interests and functions and the emerging markets
needs for fair services and cost-effective capital are linked, equitably
interfaced and matched. A large array of content-driven custom-designed
software of financial products is being developed, aiming to harness
the transforming powers of the Internet, to deliver, what is woefully
lacking: choice and quality of financial services, transparency
and liquidity to the Emerging Markets.
Deals
Fundmore invites subscribers to submit
a limited number of documented deals and development projects for
FREE
feasibility assessment by our highly professional team.
Please send your details to:
Deals@FundmoreMerchantBank.com
or complete on-line
request .
Offerings
Fundmore invites subscribers to submit
the Executive Summaries of a limited number of Offerings: co-investment,
joint venture and joint-development proposals for FREE
feasibility assessment by our highly professional team.
Please send your details to:
Offerings@FundmoreMerchantBank.com
or complete on-line
request .
From our Research
There is a need to reinvent the BOT, BOO
and BOOT project financing model
Witness the past decade, the BOT project financing model was highjacked
by large western engineering, construction and multinational utility
companies, claiming that they alone have the resources and the means
to successfully develop and finance BOT type projects in the Emerging
Markets. Those handful of major players rely upon their
large financial resources, leveraged by cozy relations with international
and regional banks, export credit agencies, multi-lateral agencies
and a number of major investment banks, to decide
and control the development of essential infrastructure projects
in the Emerging Markets. Practices and consequences:
- politically inspired elitist practices;
- collusion with manufactures, traders, suppliers,
engineering and construction companies;
- distortion of the real equity value of project
sponsors (usual equity claims; 25% - 30%) most of it is
attributed for front-end development costs;
- substantial increases in project costs due to parallel
increase in debit finance requirements;
- exorbitant (returns on equity)expectations, in
some cases exceeding 23% PA;
- unwarranted increase in the cost of the production
unit to local end users;
- lack of transparency and stifling of competition;
- compromising the main tenant of BOT projects of
its “limited or no recourse” debit financing, resulting in the
unwelcome burden of increasing the national debt of the host country.
Fundmore will proactively use its extensive financial
engineering experience and knowledge of these emerging markets,
to harness the transforming powers of the Internet to loosen the
multinationals grip over this essential
development sector to the emerging markets countries. A number of
measures are planned including:
- Open the project processes to the multitude of medium size firms,
qualified to undertake the planning and execution of all types
and sizes of projects;
- Give equity investors, fund managers and institutional investors,
first-mover advantage in accessing BOT type project,
to participate and to impact the planning , supervision
and execution events of projects;
- By way of competitive online open tenders, seek the participation
of suppliers, contractors, subcontractors, engineering, sub-traders,
operators and managers;
- Offer governments sound alternatives to their costly reliance
upon Multinationals as project sponsors.
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