State-owned enterprises (SOEs) play a pivotal role in economies worldwide, delivering essential goods and services while advancing public policy objectives. Whether managing rail networks, utilities, or national resource assets, SOEs often require significant capital to refinance legacy debt, expand operations, and underwrite new infrastructure projects. In an era of fiscal constraints and evolving capital markets, traditional financing avenues — such as public bond issuances or multilateral development bank lending — are increasingly supplemented by private credit solutions that can offer greater flexibility, speed, and customization.

At National Standard Finance LLC (NSF), a U.S.-headquartered multinational private credit lender and strategic advisor focused on government-linked transactions and infrastructure financing, the growing importance of tailored capital solutions for SOEs is clear. With nearly two decades of experience structuring sophisticated institutional capital, NSF provides financing and advisory services capable of meeting the nuanced demands of state-linked entities worldwide.

Why SOEs Turn to Private Credit

Traditional lenders such as commercial banks and public bond markets serve vital functions, but they often encounter limitations when addressing the unique risk profiles, revenue structures, and policy considerations inherent in SOE financing. Many SOEs must meet stringent financial and credit rating thresholds — often seeking at least investment-grade metrics to access institutional capital at competitive terms. This ensures that lenders can assess creditworthiness with confidence and that financing aligns with long-term cash flows underpinning projects. Without such discipline, debt servicing strains public balance sheets and risks fiscal sustainability.

Private credit lenders like National Standard can underwrite financing where conventional lenders may hesitate, particularly when transactions involve:

· Refinancing high-cost or structurally misaligned legacy debt, restoring balance sheet health and extending maturities;

· Greenfield financing for new infrastructure developments;

· Brownfield upgrades or modernizations that enhance public service delivery;

· Cross-border, multi-stakeholder capital programs requiring bespoke structures and risk mitigation.

By focusing exclusively on government-linked infrastructure and capital projects, NSF aligns institutional capital with resilient revenue streams, risk-optimized structuring, and extended maturities often unmatched in public markets.

Refinancing and New Capital Projects: Strategic Private Capital

SOEs frequently face the dual challenge of refinancing existing obligations while securing capital for future growth. Traditional public bond markets may impose restrictive covenants or demand credit enhancements that are difficult to obtain in volatile market conditions. Conversely, private credit solutions can offer more flexible terms, covenant-light structures, and financing calibrated with project lifecycles.

For refinancing, private credit can:

· Consolidate high-cost obligations into longer maturities, easing near-term liquidity pressures;

· Replace floating-rate exposures with fixed or tailored structures to reduce interest rate risk;

· Provide project-level refinancing, isolating risks and revenues tied to specific operational assets.

On the new project front, SOEs benefit from capital that reflects the long gestation and operational timelines of infrastructure assets — from transportation corridors and energy networks to digital infrastructure and utilities. Private credit providers like NSF structure financing to match cash flow profiles while incorporating appropriate risk mitigation, including revenue pledges, guarantees, or blended instruments that balance public priorities with investor protections.

Minimum Criteria: Credit Strength and Institutional Alignment

A cornerstone of effective SOE financing is meeting minimum financial and credit criteria that assure institutional capital providers of sustainable repayment capacity. While investment thresholds vary by transaction and sector, lenders typically seek:

· Strong underlying cash flow projections, often backed by concession agreements, service fees, or public guarantees;

· Robust governance and transparency frameworks to manage operational and political risk;

· Credit support mechanisms, including quasi-sovereign guarantees or covenant structures aligned with public policy objectives.

SOEs that align with these benchmarks — often near investment-grade standards — unlock access to capital markets and institutional private credit on favorable terms. National Standard’s due diligence emphasizes these attributes, ensuring that financed transactions serve both public interest and investor confidence.

Comprehensive Advisory: Beyond Capital Alone

As Russell Duke, CEO of National Standard, emphasizes, “Our role is not just to provide capital but to guide SOEs and public sponsors through the full lifecycle of financing — from structuring to execution and beyond.” This philosophy underscores NSF’s commitment to delivering value beyond pure lending.

In addition to private loan products, NSF offers comprehensive advisory services, including:

· Project structuring and financial modeling, essential for transforming policy visions into bankable propositions;

· Public sector advisory, encompassing bailouts, restructuring, and financial strategy for government-linked entities;

· Multilateral and export credit agency engagement, integrating blended finance solutions;

· Risk mitigation and compliance frameworks that de-risk transactions for institutional investors.

This end-to-end support ensures that SOEs are not merely recipients of capital but strategic partners in shaping financially sound and socially impactful infrastructure outcomes.

Partnering for Sustainable Growth

The infrastructure financing gap continues to widen globally as populations grow and public finances strain under competing demands. Private credit financing — when thoughtfully structured and prudently underwritten — offers a compelling pathway for SOEs to achieve financial stability and infrastructure growth simultaneously.

National Standard Finance LLC stands at this nexus of public need and private capital, offering a blend of institutional financing and elite advisory tailored to complex, government-linked transactions. By helping SOEs meet rigorous credit criteria and access long-dated capital, NSF enables sustainable development that aligns economic priorities with global investor expectations.

For more information on how National Standard partners with SOEs and government entities to finance transformative infrastructure, visit www.natstandard.com.