Article
Define the Asset Recycling Program
The first step for a government in embarking on an asset recycling program is to define the program in terms of goals and objectives, and scope and scale based on the country’s strategic priorities.…
Article
Critical Factors for Re-Investment Mechanisms
Critical Factors for Re-Investment MechanismsIrrespective of the choice of re-investment mechanism, based on best practices for accountability and transparency, there are two critical factors for…
Article
Re-investment Mechanisms
To date, many countries that have monetized infrastructure assets have done so on an ad hoc basis, rather than such transactions being based on a broader program of asset recycling. In these…
Article
Infrastructure Investment Trusts (InvITs)
Description of Infrastructure Investment Trusts Infrastructure Investment Trusts or InvITs are pooled investment vehicles like a mutual fund that allow infrastructure assets owners to monetize…
Article
Infrastructure Investment Trusts (InvITs) - Case Studies
Case Study - PowerGrid Infrastructure Investment Trust, IndiaPOWERGRID Infrastructure Investment Trust (PGInvIT) was registered with the Securities and Exchange Board of India on January 7, 2021, as…
Article
Infrastructure Asset-Backed Securitization (IABS) - Case Studies
Case Study on IABS for toll roads in IndonesiaCase Study on IABS (Indonesia) – Securitization of Jakarta-Bogor-Ciawi (Jagorawi) toll road projectIn August 2017, Jasa Marga, the largest toll road…
Article
Infrastructure Asset-Backed Securitization (IABS)
Description of Infrastructure Asset-Backed Securitization (IABS) Infrastructure asset-backed securitization of infrastructure can be used to unlock capital and raise financing without losing…
Article
Divestment - Case Studies
Case study on asset-based divestment – outright saleWestConnex Privatization in AustraliaWestConnex is a 33km long motorway in Sydney and the largest toll road project in Australia. The motorway will…
Article
Divestment
Description of Divestment In this model, the underlying asset for monetization can be either a standalone infrastructure asset or a corporate entity holding multiple infrastructure assets.…
Article
Direct Contractual Agreements - Case Studies
Case study - Brownfield concession agreements for asset monetizationToll-Operate Transfer (TOT) of Asset Monetization (Bundle 1) in IndiaThe TOT Bundle 1 consisted of 682 km of highways across nine…
Article
Direct Contractual Agreements
Description of Direct Contractual Agreements Direct contractual agreements are utilized by public sector entities to monetize brownfield infrastructure assets without losing outright ownership…
Article
Checklists for Asset Recycling
Asset Recycling RoadmapAsset recycling is a mechanism that has been adopted by various governments to monetize existing, operational infrastructure assets (brownfield assets) to unlock capital and to…
Article
Monitoring the Asset Recycling Program
An asset recycling program is a virtuous cycle that should be continuously improved through the regular review of program outcomes against initial objectives, identifying failures or mistakes and…
Article
Reinvest Proceeds
The need for a dedicated fund to manage proceeds Proceeds from asset monetization should be managed in a way so that the public sees clear link between of infrastructure monetization and…
Article
Create Momentum
The Governments should create momentum by setting the right perception of an asset recycling program to the public, in engaging with the private sector/ investors by creating and showcasing a…
Article
Create the Necessary Setting (Public Sector Governance of Asset Recycling)
Good governance should underpin an asset recycling program. This requires establishing enabling institutions, procedures, and processes around the lifecycle of an asset recycling program. To…
Article
Monetize Asset / Transaction Process
Choosing the right monetization model There are various monetization models that can be applied, including direct contractual agreements, divestments, and structured financing. The following…
Article
The Case for Asset Recycling
There are three key reasons for implementing an asset recycling program; namely to: (i) meet infrastructure investment needs and gaps (ii) alleviate constraints in raising financing and funding (iii…
Library
Asset Recycling Handbook (Download PDF)
The Asset Recycling Handbook provides a roadmap for monetizing existing infrastructure assets and reinvesting the proceeds into new projects, a strategy to unlock capital and support further…
Article
Why countries should implement asset recycling, and where to get good guidance
What if governments were able to leverage existing, aging infrastructure to raise funds for new development? Many countries are realizing that this is in fact possible through an approach called “…
Article
Towards Financial Close in Asset Recycling
Financial close typically will coincide with the legally binding commitments of equity holders and debt financiers to provide or mobilize funding for the transaction. Financial close, in most cases,…
Article
Way Forward for Countries to Tap Into Asset Recycling Through Islamic Finance
Key regulatory issuesFrom a regulatory point of view, the key considerations for financiers of an assets recycling transaction may include certainty of legal system, clarity of tax law and…
Article
Case Studies on Islamic Finance for Asset Recycling
Box 12: Case Studies on Islamic Finance for Asset RecyclingMalaysiaIn Malaysia, the birthplace of sukuk in the 1990s, the Securities Commission Malaysia introduced the Sustainable and Responsible…
Article
Assets Recycling Process in Islamic Finance
Assets selection and eligibility criteriaBankabilityIn simple terms, the bankability of an asset refers to the willingness of fund providers to fund against such asset as collateral. Bankability is…
Article
Overview of Assets Recycling Through Islamic Finance
table tr th, table tr td { border:1px solid #ffffff; padding:10px } Introduction to Islamic Finance instruments for assets recyclingOne strikingly common feature between assets recycling and…