Deal Origination
A rare combination of flexibility and scale
Deal Origination
With a longstanding history of investing across key development sectors and wider infrastructure projects
Deal Origination
We help you navigate the complex African landscape of risk and opportunity

Public Private Partnership

Under a PPP model, the private sector finances infrastructure development and is repaid by the Project (or by the State under a Build Operate Transfer model) in regular payments.

Relevant to infrastructure project development in Africa, Nex Rubica Capital applies Build Operate Transfer (BOT) and Engineering Procurement and Construction (EPC) funding methods that requires both structuring and financial advisory services.

We partly achieve this by:

  • Helping identify and prioritise financing as defined by project sponsor or client
  • Assisting the client in their allocation of project risk
  • Reviewing and optimising commercial and financing terms
  • Assisting the Project Company in managing the process of raising limited recourse financing
  • Co-ordinate the work of financial, legal, engineering and program advisors
  • Assist in preparation of term sheets, investment documentation and reviewing investment documents formation memoranda

Clients: Government Ministries, State Owned Enterprises, Banks, Development Finance Institutions.

Strategic Opportunities

Strategic Opportunities

For our Consulting services we believe the real purpose of research lies in its real world application, which is why our consultants all have extensive hands on experience in their chosen fields.

Our Consulting service provides an unrivaled portfolio of expertise services and solutions to enable you to grow and strengthen your business whether on a domestic or global scale

Areas of Coverage

Our expertise includes restructuring, recapitalisation, asset sales, and divestitures.

  • Credit Scoring for Private Companies Here we generate a scoring method using our bespoke models for either screening new borrowers or analyzing credits for securitisation
  • Risk Management Our practical experience in Risk Managing equity and fixed income assets allows a holistic approach to delivering solutions that optimise the risk reward trade off in capital allocation. Within the process also applying VaR , stress testing and model valuation applications, risk functions developed to compute economic capital

Clients: MidCap Corporates, African Champions, African Governments, Banks, Pension Funds, Family Offices, State Owned Enterprises, Development Finance Institutions.

Infrastructure & Utilities

Along with a research piece we published in 2018 on the USD100 Billion annual gap in infrastructure investment, various other sources like the African Development Bank have quantified a similar amount required to plug large scale investment deficit in this area. One of the reasons this persists is due to the African state remaining the main source of infrastructure investment across the continent. State owned companies take the lead in developing and financing major infrastructure projects. It can be argued that this has accelerated the investment gap as States constantly struggle with both  balance of payments and sovereign risk issues that directly affect capital sourcing and cost of funding.
In later years, we have seen and  assisted some States transform their State Owned Companies (SOW’s) to allow for Private sector involvement. Usually starting with the Ministry of Finance and an Act of Parliament that provides the legal protection for developers and investors in Public Private Partnership (PPP) opportunities.
 
Nex Rubica Capital has been at the forefront of assisting States with enhancing PPP initiatives – ensuring they are aligned with investment from thr Private sector.
 
For Utilities such as water and waste plants, there is an obvious need for Export Credit Agencies to provide cover for lenders looking to mitigate counter party risk in off taker or purchase agreements. 
 
 
Nex Rubica Capital aims to facilitate direct loans to Utility Projects once EPC participation covers completion risk.  One way for Utilities like Water and Power plant companies to reduce the government risk is for developers to secure credit worthy offtaker agreements. This will expose lenders to shorter and more straightforward commercial risk. These offtaker agreements sometimes in the form of Purchase Agreements can serve as anchors for future cashflow.
 
The fundamental factors that support increased investment in Africa’s
infrastructure remains:
  • Food security utilising Africa's arrable.land is a major export potential thar can only be harnessed with the right logistics, processing amd storage facilities
  • Rare Earth and Electric Vehicle minerals which form part of the value chain of large auto and high tech manufacturers depend on particular mining and transport infrastructure
  • Gas capture technology in Gas to Energy projects impact green house gas emission targets as they retain and transform gasses that can be utilised to drive Africa’s industrialisation goals.

Clients: Government Ministries, State Owned Enterprises, Banks, Development Finance Institutions, Project Developers.