Ep239: Nomura’s Vinod Mukani on the state of the commercial bank market
Feb 1, 2024
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Vinod Mukani from Nomura Securities talks about the state of the commercial bank market and Nomura's success with development loan facilities. Topics include strategic positioning in the US market, navigating devco facilities in commercial banking, advice for aspiring business professionals, and emphasizing conviction in investment decisions.
Nomura focuses on real economy assets for infrastructure projects with a societal impact.
Nomura excels in providing bespoke solutions for asset owners facing market challenges.
Deep dives
Nomura's Focus on Infrastructure and Power Financing
Nomura, led by Vinod Mccani, emphasizes real economy assets like transportation, power generation, and sustainable financing. The team is dedicated to offering financial and intellectual capital for infrastructure projects, collaborating closely with asset owners to make these projects economically viable with a positive societal impact. Nomura's strategic approach leverages its solution-oriented mindset, selectivity in focus, and adaptability to macroeconomic and environmental changes.
Success of Devco Facilities and Market Shift
Nomura's success in arranging devco facilities stems from its problem-solving approach for asset owners facing challenges like interest rate volatility and supply chain issues. By providing bespoke solutions to mitigate risks and support asset development, Nomura has excelled in offering devco facilities to address varying market needs. The team ensures that residual risks are appropriately priced, creating liquidity and attracting valuable capital partners.
Navigating Cost of Capital Changes and Future Financial Products
Nomura addresses the impact of increased cost of capital on asset developers, emphasizing the need for revenues to support higher costs and manage market volatility. Despite challenges, the policy environment favors infrastructure and renewables, leading to expanded opportunities and deal flow. Looking ahead, the market anticipates innovative financial products to address evolving needs such as digitization, data centers, hydrogen technology, and grid development, requiring a solution-oriented approach and strategic adaptation.
Vinod Mukani of Nomura Securities is our guest for this episode. He begins with a background on his activities at Nomura and growing Nomura's infrastructure and project finance areas before switching to a discussion on the state of the commercial bank market and Nomura’s success with development loan facilities.
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