Title: Risk Component Based Infrastructure Debt Valuation Analysis and Long-Term Investment

Language: English

Type: Document

Nature: Report

Published: May 1, 2016


Region: Global

Country: Global / Non-Specific

Keywords: Knowledge Lab, Funding and Financing, Risk

Document(s):


Document Summary:

For this study, a hypothetical case is built and modeled. In this case, a toll road project is structured. 


Document Details:

Long term financing to infrastructure and mobilization of private long term capital has been recognized as a key agenda in advancing the global economic development. There are several barriers in infrastructure financing and big gaps between expectation and reality. A highly pronounced barrier is the lacking of capacity of investors to price risks in a structured manner. This paper has discussed component-based infrastructure valuation analysis and modeling blocks. The component-based valuation mechanism is very useful for issuers and investors to categorize, analyze and price specific risks transparently and can provide a basis for structuring the risks on an ex-ante basis so as to make project investments suitable for investors of different risk preference.


Updated: April 12, 2022