Key Points:
Fundamentally, the appetite for infrastructure projects
with secure, stable cash flows remains strong but it is
increasingly difficult for competing bidders to raise
finance.
The global financial crisis is having a significant impact of
the infrastructure financing market. It is timely to consider how
that market is changing and potential future developments.
Debt Finance Market
The global financial crisis is having a significant impact of
the financing of infrastructure projects. Credit rating downgrades
for monoline insurers, because of their exposure to highly
structured collateralised debt obligations and the like, have
caused the credit wrapped bond market to temporarily shut up shop.
In addition, banks have become increasingly concerned about the
availability and cost of finance, and are reducing the amounts
which they are prepared to provide to any single project, and the
tenor/period for which it will be provided. The lack of liquidity
has
