The Dawn of the Global Infrastructure Financing has arrived in the 21st Century
The 21st Century brings with it the positive changes in the International Capital Markets, particularly in the area of Infrastructure Financing. Gone are the days when the biggest Bretton Woods Multilateral Lending Institutions together with the Biggest Investment Banks, which are most often affiliates or subsidiary of the biggest International Commercial Banks dominated the Global Infrastructure Financing.
The Global Financial Crisis have changed the Landscape of the International Capital Markets
We, at the Global Investment & Development Partners (GIDP) have observed that the Governments of the Developing Nations of Asia Pacific, Eurasia, Africa, Middle East, Caribbean and South America have started to move away from the traditional Investment Banking Community. The hard lessons learned by the Government Technocrats from the: (i) 1970s and 1980s Latin American Debt and Economic Crisis, (ii) 1997 Asian Financial Crisis, (iii) the 2008 U.S. Subprime Mortgage Debt and Financial Crisis, (iv) the recent European Debt Crisis, and (v) the more than USD 10 Trillion of Derivatives exposure of the International Banks may have contributed to the mistrust of the Government and Economic Leaders of the Developing Nations to the traditional Investment Banking and the Big International Banks. Hence, the growing trend nowadays for the International Commercial Banks and Investment Banks to just cater the commercial banking and investment services instead of directly lending and/or getting big credit risk exposure to Infrastructure Projects.
Who Fills the Shoes of the Traditional Investment Banking?
Smaller Boutique Investment Banking have spread in the Domestic and International Capital Markets to fill the shoes of the biggest Traditional Investment Banking. Most of the Boutique Firms are founded by the formers officers of the biggest International Investment Banks. However, the Boutique Investment Banks are small enough to cater to the estimated USD 92 Trillion of Infrastructure Financing requirements of the Developing Nations of Asia Pacific, Eurasia, Africa, Middle East, Caribbean and South America.
The Advent of Private Multilateral Infrastructure Financing
To cater to the needs of the USD 92 Trillion International Market for the Sovereign Infrastructure Market, International Creditors and Private Multilateral Financing Institutions (PMFIs) has timely arrived. The PMFIs mostly consist of a consortium of multinational umbrella of organization spanning the whole world. The PMFIs has become the architect of the sophisticated institutional liquidity that will utilized to finance the Global Infrastructure Financing requirements of Sovereign Nations. Indeed, the PMFIs has filled the shoes of the Traditional Investment Banks in fulfilling the capital needs of the Infrastructure Financing of the Developing Nations of Asia Pacific, Eurasia, Africa, Middle East, Caribbean and South America.
What is the Role of the Global Investment and Development Partners (GIDP)?
We at GIDP works in dynamic and trusted partnership with the International Creditors and PMFIs to deploy the Financial Resources of the Global Financial Institutions, Sovereign Wealth Funds, Royal Family Trusts and Asset Management and Private Wealth to finance the infrastructure capital needs of the Developing Nations.
Finally, we sincerely thank our International Creditors and our PMFI partners for the opportunity they provide to a Financial Consultancy Company like us at GIDP. We believe and commit ourselves to the great vision of our PMFI partners and we work 24/7 to assist in actualizing the “Global Infrastructure Marshall Plan” for the Developing Nations of Asia Pacific, Eurasia, Africa, Middle East, Caribbean and South America.
President & CEO
Global Investment &
Development Partners (GIDP)