Date of this Version

5-23-2013

Document Type

Working Paper

Publication Details

Published version

Regan, M. (2013). Project finance: Transactional evidence from Australia (Research manuscript RP113). Megaprojects Perth paper.

Copyright © 2009-12 Michael Regan

Abstract

The international project finance market is experiencing a period of significant change. The new Basel III capital adequacy rules will make it harder for banks to provide long-term project finance, and alternative sources of finance such as the shadow banking sector, fund managers, sovereign wealth funds, and institutional investors will take time to bridge the financing gap. In the meantime, it is difficult to source project finance for tenors beyond seven years, risk premiums are higher, and finance is difficult to source. Recent innovations in the form of the European Investment Bank’s Project Bond Initiative, and the ASEAN Infrastructure Fund and Bond Market Initiative can provide credit- enhancing support for qualifying projects in the medium term.

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.