Date of this Version


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


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.



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