Observatorio de I+D+i UPM

Memorias de investigación
Research Publications in journals:
Is there scope for a new project bond market in Europe? A promising opportunity for promoting transnational infrastructure
Year:2012
Research Areas
  • Engineering,
  • Transport
Information
Abstract
The EU Commission recently launched an initiative promoting EU support mechanisms, e.g. subordinated loans/ senior-debt guarantees, to foster Public Private Partnerships for the Trans European Networks, and to make long-term project bonds more appealing for Institutional Investors. Most mainstream investors will not invest in project bonds until project finance transactions are in the operating phase and generating cash-flow. A European project bond market could be an effective instrument for infrastructure financing, showcasing Europe to Latin American Institutional Investors. The work shows that reserve requirements for Institutional Investors in long term investments, according to Solvency II are lower when credit rating reaches A- instead of BBB+, resulting in a A- minimum threshold. International Financial Institutions (IFIs) are important providing credit enhancement of bonds to reach the A- rating required and liquidity acting as ?market makers?.
International
Si
JCR
No
Title
Revista de globalización, competitividad y gobernabilidad
ISBN
1988-7116
Impact factor JCR
Impact info
Volume
6
Journal number
3
From page
89
To page
99
Month
SEPTIEMBRE
Ranking
Participants
  • Autor: Rosales Raul
  • Autor: Jose Manuel Vassallo Magro (UPM)
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Planificación del Transporte
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