Government Finance Solutions
How We Work With the Public Sector
Infrastructure Project Finance
Long-tenor project finance for transport, energy, water, and social infrastructure where the revenue stream, a government tariff, concession fee, or service charge, supports a project finance structure. We work with ministries of finance, infrastructure agencies, and public utilities to structure facilities that are bankable on the international market.
Blended Finance
Many infrastructure projects in developing markets require a combination of concessional and commercial capital to achieve bankability. We structure blended finance facilities that combine grant or concessional funding from development partners with commercial debt and equity from private investors, improving the economics for all parties while delivering development impact.
Municipal and Sub-Sovereign Finance
We arrange financing for cities, municipalities, and sub-national governments seeking to fund urban infrastructure, affordable housing, and municipal services. We work with governments to identify the appropriate financing structure, whether a direct municipal bond, a project finance facility, or a public-private partnership, and manage the execution process.
Policy and Project Identification
We work with government counterparts to understand the infrastructure investment programme, identify priority projects, and assess the financing options available for each. This early-stage advisory work helps governments make informed decisions about which projects to advance as government-funded initiatives versus private or blended finance opportunities.
Feasibility and Structuring
For projects selected for private or blended finance, we conduct a detailed feasibility assessment to confirm technical viability, revenue sustainability, and financing structurability. We then design a facility structure that allocates risks appropriately between the public sector, private investors, and development finance institutions.
Investor Mobilisation
We take the structured transaction to our network of institutional investors, DFIs, and co-investors, managing the bookbuilding or private placement process. Our experience with the major development finance institutions allows us to engage them early and ensure their participation requirements are incorporated into the transaction structure from the outset.
FAQ
Common Questions
Does Polinvest require sovereign guarantees for government-related transactions?
Not always. Many project finance transactions can be structured without a sovereign guarantee where the project's own revenue stream provides sufficient lender comfort. However, a sovereign guarantee or government support letter can materially improve the terms available from commercial lenders and is sometimes required to reach the target funding quantum.
How does Polinvest engage with development finance institutions in government transactions?
We have established relationships with the African Development Bank, IFC, Proparco, DEG, BIO, FMO, and other DFIs active in our target markets. We engage these institutions early in the transaction process to understand their appetite, confirm eligibility, and structure the facility in a way that meets their requirements alongside those of commercial investors.
Can Polinvest provide advice on the choice between bond issuance and project finance?
Yes. We provide independent advisory services on the most appropriate financing route for government and public-sector infrastructure projects. The choice between a sovereign bond, a project revenue bond, and a project finance loan depends on the project's cash flow profile, the government's overall debt strategy, and prevailing market conditions.
Government Finance in Practice
Navigating Public Sector Capital Needs
Government finance transactions require a different approach from purely commercial transactions. The decision-making processes are longer, the stakeholder base is wider, and the accountability requirements are more stringent. At the same time, government-backed transactions often benefit from sovereign credit enhancement that makes them attractive to a broader universe of lenders and investors, including development finance institutions and ESG-focused funds that may not participate in purely commercial transactions.
Our experience with public sector clients has taught us that the most effective engagements begin with investment readiness support, helping government clients understand what institutional lenders and investors require, and ensuring that projects are structured and documented to meet those requirements before being taken to the market. Investment readiness work is often undervalued by governments who want to move directly to financing, but the preparation phase typically determines whether a transaction succeeds or fails. A well-prepared project that enters the market at the right time, with the right structure and the right information package, will close faster and at better terms than a poorly prepared one regardless of its underlying quality.
Currency risk is a particularly important consideration in government infrastructure finance. Infrastructure assets typically generate revenue in local currency but are often financed in hard currency because local capital markets are insufficiently deep or liquid. This currency mismatch creates a risk that must be managed through hedging, revenue indexation, or government guarantee arrangements. We work with government clients to design currency risk management frameworks that are both effective and affordable, drawing on our experience with comparable transactions in similar markets.
Public Sector Engagement
How We Work With Government Teams
Working effectively with government counterparts requires patience, transparency, and a genuine understanding of the public sector decision-making environment. Government teams operate under procurement rules, accountability frameworks, and political pressures that are absent from private sector transactions. We have invested in understanding these dynamics across our target markets, and we adapt our approach accordingly, presenting options in formats that facilitate internal government review, managing timelines that allow for cabinet or parliamentary approvals where required, and ensuring that documentation is structured to withstand public scrutiny.
Public-private partnership structures are an increasingly important tool for governments seeking to leverage private capital for public infrastructure without adding to sovereign debt. PPP transactions are complex, they require sophisticated contract structures that allocate risk between the public and private sectors in a way that is fair, bankable, and resilient to changes in government. We have experience with multiple PPP models across our target markets and can advise governments on the structures that have worked well in comparable contexts, as well as those that have encountered problems and why.
Transparency and accountability are values we hold ourselves to in government transactions, not just values we advise governments to uphold in their own processes. We will not facilitate transactions that we believe are designed to circumvent proper procurement processes, that involve conflicts of interest that are not properly disclosed, or that we believe would not withstand public scrutiny. We recognise that our reputation in one government market is a reference for our relationships in others, and we protect that reputation by maintaining the highest standards of conduct in all our public sector engagements.
Polinvest Capital
Submit Your Project Today
New, existing, and stalled projects are all considered. Our team reviews every submission and responds within five business days.
All projects considered
New, existing, or stalled, we evaluate every submission on merit.
5-day response commitment
Our origination desk responds to every submission within five business days.
$500M– $3.5B available
Active capital across syndicated, project finance, equity, and infrastructure facilities.