Emerging From The Crisis: Infrastructure Finance Post-GFC

Download Now Date Added: Oct 2010
Format: PDF

During the pre-GFC "Good old days" infrastructure finance in Australia and worldwide was characterized by: debt being readily available with financial institutions having "Surplus" capital; highly liquid capital markets allowing financial institutions to easily source balance sheet funding to lend out; risk being progressively re-priced downwards by this weight of money; very strong competition for available infrastructure deals; increased structural complexities for the financial "Solution" as competing bidders sought a competitive edge; increased use of derivative instruments in the "Solution" aggressive bidding of key risk factors for new Greenfield PPPs; aggressive leverage in transactions with sometimes multiple debt layers; and longer agreed lending terms.