Investors Forum

February 9, 2021

Restorium Capital berths in Nigeria, launches credit enhancement, project funding services

FG revenue shortfall put at N1.9trn in 11 months

By Nkiruka Nnorom

In a bid to increase productivity among businesses and boost infrastructure development in the country, Restorium Capital Limited, an investment banking and project development firm, said it is launching trade finance and credit enhancement services for importers and manufacturers as well as project financing as it re-enters Nigeria market.

Additionally, the company said it would also launch stock loan funding for publicly-traded securities on the Nigerian Stock Exchange, NSE, for a minimum loan size of $1million.

Managing Director/CEO of the company, Omotayo Adeola, disclosed this at a virtual press conference to announce the re-launch of the company’s services in Nigeria after exiting the country five years ago.

She disclosed that Restorium Capital was set up with a view to assisting prospective businesses, governments and corporate institutions achieve their objectives by linking them with various development and investment funds in Europe, America, and Asia.

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She added that the company currently works with alliance partners that provide equity and debt financing for corporates from $20 million and above and Public Private Partnership (PPP) projects from $100 million and above.

According to her, the company also provides funding for humanitarian projects that make profits in the areas of social housing, agric business, renewable energy, and waste to wealth.

“Manufacturers and trade importers are facing difficulties in sourcing forex and opening of letter of credit (LC) for the importation of much needed raw materials and finished goods.

“Now through Restorium, they have access to the much-needed foreign exchange as they can open the LCs and order for goods and source forex to pay at a later date.

“Currently, manufacturers and importers require 100% cash cover in their bank accounts before LCs can be opened for their imports by their banks.

“Now LCs can be opened without needing to provide a collateral or substantial amount of capital, thereby providing additional source of funding for businesses which can use the cash that would have been used as collateral for working capital needs until the goods are delivered,” she said.

“With the implementation of the Basel III capital requirements, which requires banks to hold higher capital reserves against losses coupled with banking regulations that require banks’ lending to be fully collateralised, which makes project and infrastructure funding unattractive to the formal banking sector, Restorium provides the much-needed solution by matching projects with investors in Europe, America, and Asia, among others,” Adeola added.

Vanguard News Nigeria