Bina Istra Successful execution of the first project bond in the region
|
|
- Dwain Potter
- 8 years ago
- Views:
Transcription
1 Driving the 1 st Project Bond to Success in Eastern Europe Adam Nicolopoulos, Executive Director, Infrastructure Group, UBS Investment Banking Division 3 September 2003 The concept of structuring and placing a bond issue for an infrastructure asset is a very intriguing one and can be viewed by some as a long shot, especially when this asset happens to be a road concession project based in Eastern Europe and does not have a government guarantee. There is no need to check for precedents because you won t find any. The appointment of a financial advisor and lead manager, UBS, took place in August 2002 and the launch of the bond occurred in February 2003, only seven months later. The recent bond was successfully placed, increased in size and oversubscribed by 50% and was a tremendous success. This is the story There were some very important factors that contributed to the success of the deal that are examined in greater detail below. Among other things there was the unique structure of the transaction, which was underpinned with an adaptive subsidy payment mechanism (establishing one major stream of the revenues). This payment mechanism effectively mitigates any traffic risk associated with the project. the unwavering commitment of the project sponsors of Bina Istra and the Croatian Government. Both parties had a clear vision of the issues that were important to them in regards to price, structure, timing and term structure, and wanted a strong deal that would satisfy their conditions. the strategic commercial rationale and location for the deal. Croatia is a growing economy with a real need for infrastructure projects, particularly in the Istrian region whose prosperous economy relies heavily on tourism and trade. A group of experienced and professional advisors on all sides of the deal. The advisors had previous experience working with each other on Phase 1A, which was completed successfully, and were committed to the project from day one. Finally there is the competitive financing structure of the bond. The bond had the longest possible tenor with the lowest price, which minimizes the potential of financial contribution for the government. In addition, the bond had a number of other innovative features and it was a financing that could only be priced in the bond market given its creative capital draw down terms. Simply put, this was a deal that the banks would not do. rating close to the sovereign Page 1 of 5
2 The unique financial structure at the heart of the success of the deal is a financial contribution (FC) from the Croatian government administered through an annually replenishing Debt Service Reserve Account (DSRA). This groundbreaking arrangement was introduced in 2000 and was amended as part of the recent deal to address certain project risks and make potential investors more comfortable over the project s ability to cover its costs. As part of the FC, the Croatian government undertakes to pay a monthly financial contribution (which is computed at the end of the previous operating year) by computing the difference between the project s annual costs and next year s (forecasted) tolling revenues. This mechanism differs from a shadow toll because the payment is not subject to traffic volume. This FC, after deducting all projected toll revenues, is meant to cover all Bina Istra projected operating and maintenance costs, debt service requirements and a guaranteed fixed return on the equity investors in Phase 1A. The unconventional FC structure helps to effectively mitigate many of the risks of the project. This structure provides ongoing liquidity protection as any draw down on the DSRA (due to, for example a cash shortfall) will be automatically replenished in the following year through an additional FC, to the extent utilised. In essence, the Financial Contribution effectively manages many of the revenue and cost risks typical in similar infrastructure financings, particularly in emerging markets. Furthermore it is flexible and allows the Government to set the level of tolls at a level that they feel optimal, given socio-economic and political considerations. Naturally the higher the level of toll revenues, the lower the annual FC. However depending on traffic growth rates and road utilisation the FC payment stream is phased away as the tolling revenues get to exceed the project annual costs, including debt service and return on capital for the project sponsors. The strength, commitment and experience of the Bina Istra shareholders also played a large role in the success of the transaction. The Bina Istra group comprises Bina Fincom, which owns 67% of the company, which in turn is owned 51% by Bouygues Travaux Publics S.A. (Bouygues), the internationally recognized French company with a strong history of constructing and operating roads. The rest of Bina Istra is owned 16% by Bouygues directly, Croatian Motorways with 14.8% and Istarka Autocesta with 2.2%. Overall, the combined Bouygues stake in Bina Istra is 50.2%. The combination of a strong, well regarded successful international developer with the backing and financial support of the Croatian government was crucial for successful conclusion of the deal. Phase 1A of the deal was an unqualified success, being completed on time and within budget by Bouygues in Page 2 of 5
3 The project was initially awarded to Bina Istra in 1995 and closed in Phase 1A was completed and became operational in 1999, and was successfully financed with 185 million of combined equity and commercial bank debt, toll revenues and an element of government support. Phase 1B involves the construction of the Mirna viaduct and continues with the development of a Y-shaped roadway that runs from the south into central Croatia before branching to the northeast and northwest, all the way to the Slovenian border. The funding profile of the deal is relatively conservative given the governments' FC, with 64.3% of the project costs funded by senior debt (a combination of bonds and bank debt) during the three year construction period ( ) with the state contributing 18.6%, toll revenues and equity contributing 14.8%, and the remaining coming from interest income and cash released from the DSRA from Phase 1A. The strategic commercial rationale and location of the project was another key success factor. Croatia has experienced a sustained period of economic growth, with GDP growth of 4.0% expected in 2003, an investment-grade rating (BBB-/Baa3), and proposed entry into the European Union expected in All of these factors have been a further driver of Croatia s expansion as an important economic and tourist destination of Europe. Tourists have been increasingly drawn to the diverse and extensive history, unspoiled coastline, and ideal location of Croatia, driving tourism revenues up 30% from 1997 to Given the lack of extensive train and rail links throughout the country, the road network is the backbone of the Croatian economy. Croatia has over 28,000 km of roads, of which only 625 km is motorway standard. Spending on roads accounts for a sizeable 80% of the Republic s annual transport budget, which by itself is 10-12% of overall government spending. The Croatian government has also placed great strategic importance on the Istrian Motorway project. The Istrian region, with an incredibly diverse geography, which includes secluded bays, stunning cliffs, mountains and valleys, is one of the richest and most economically diverse regions in the country. The region accounts for 15-20% of Croatian GDP and 39% of its tourism revenues, and by facilitating the development of greater commercial traffic through the Istrian region from within Croatia and from neighbouring countries such as Italy and Slovenia, the government hopes to further develop the economy of the region. The role of experienced financial advisors was vitally important. In conjunction with the planning for Phase 1B of the project, the company in August 2002 approached UBS, who had worked on the Phase 1A financing (which was voted the 1998 Eastern European Deal of the Year by Project Finance International magazine), and asked for its advice in arranging a financing Page 3 of 5
4 package which would be used to refinance 89 m of Phase 1A debt and to finance the construction of Phase 1B of the project. The timing of this appointment took place immediately after Bina Istra led by Bouygues had signed a Memorandum of Understanding (MOU) with the Croatian Government which explicitly laid out the implementation plan for Phase 1B. The MOU fixed the price of construction of the new section of the roadway and gave Bouygues an extremely ambitious timetable of six months to raise the necessary financing and close the deal. The challenges were immense the deal needed a creative structuring like Phase 1A and needed to amend the financial contribution mechanism (to simplify it and accommodate the additional debt). A critical challenge was to achieve a credit rating on the project as close as possible to the sovereign ceiling. This meant presenting and persuading two international credit agencies on the robustness of the financial and commercial structure as well as the effective management and mitigation of all project risks. With good co-operation and input from all the project advisors and legal counsel, this was achieved and the project achieved ratings of one notch below the sovereign ceiling. Raising 210 million of bonds was not an easy feat, especially due to a lacking precedent in sector and region. Furthermore, the bond market is a very unforgiving market of execution. Unlike the commercial bank market (a highly iterative process whereby the deal structure keeps getting refined following progressive and successive input from lenders), in the bond market you only have one shot to get it right. The bond market one can take soundings, however investors do not take a serious stance and consideration until the deal is finished. If they do not approve of the deal, for whatever reason, that is the end of the deal. No second chances. The experience with the Bina bond was very positive from the outset as the UBS team was receiving comments that investors were pleased to see a bond with an interesting structure and a project story behind it. It was also priced just right, low enough to ensure that the lowest possible level of debt service and high enough to attract the interest of European investors. Our client called it the art of pricing the deal, our team calls it having a good market judgement and being very close to the market. The strength of the financing package was another key success factor in the deal. The deal consisted of 210 million in senior secured bonds maturing in 2022 (with a 19-year term which is unusually long for Croatia), a 72 million three-year construction term loan also maturing in 2022 with the same repayment profile. The finance plan included a 30 million cost overrun facility. The improvements in the financing package from Phase 1A to 1B were dramatic, with the amount of debt increasing from 128 million to 282 million, and the tenor of the debt almost doubling from 11.5 years to 19 years. The bond rating agencies, Moody s and S&P, did a thorough examination of the proposed deal, looking at the potential risks (many of which had been mitigated by the unique Page 4 of 5
5 FC structure), the project costs, the project shareholders, the history of Phase 1A, and a variety of other factors in determining the appropriate credit ratings for the bond. The culmination of months of hard work coupled with extensive financial planning and work with the rating agencies and deal structure was obtained when Moody's and S&P rated the bonds Ba1 and BB+, respectively, only one notch below the sovereign ceiling of BBB-, remarkable for an issue of this type. Given the high non-investment credit rating of the project together with the level of payments by the government, the deal had all the benefits of a quasi-government deal which appeals to a diverse array of investors. The bond was primarily distributed to funds, with investors in the UK and Germany buying over 60% of the issue and domestic investors coming in as the third largest purchasers. The bond was priced at 364 bp over the relevant Bund benchmark (the 15 year bund rate) and has performed very strongly since its issue, currently trading at 285 bp over the relevant benchmark. The bond issue was the first ever dual listed issue on both the Zagreb and Luxembourg exchanges, satisfying the Croatian government who wanted local investors to be able to participate in such a high quality bond issue. Eastern Europe not only has substantial but also urgent plans to upgrade its infrastructure, and in particular its highway network, in the foreseeable future. The need has been exacerbated as a number of the leading economies in Eastern and Central Europe are part of the proposed expansion of the EU. Where is the capital going to come from? Most of the governments are under heavy pressure due to the restrictive Maastricht fiscal measures and performance targets that they have to comply with. It seems that the viable funding alternatives may be in PPP schemes, although the PPP experience of these governments so far has not been a particularly positive one, hence the reason for having very few projects completed in the region. The Bina Istra experience proves that this does not have to be the case. This deal has proved that it is possible for a PPP project deal to deliver a win-win case for all parties involved (both government and private sector). We hope that this deal will be a harbinger of things to come, and will open up the Eastern and Central European bond markets for future infrastructure projects. Doing this deal may have been intense but it was a lot of fun for us, and the good thing is.. everyone in the deal feels the same way. Page 5 of 5
Thierry Déau is Founder and Chief Executive Officer of Meridiam Infrastructure. This article is based on a keynote speech delivered by the author at
* * Thierry Déau is Founder and Chief Executive Officer of Meridiam Infrastructure. This article is based on a keynote speech delivered by the author at the OECD High-Level Financial Roundtable on Fostering
More informationPRESENTATION TO DDF. 8 April 2014. Allan Bødskov Andersen (Group Treasurer & Head of IR) Kristian Borbos (Lead IR Manager)
PRESENTATION TO DDF 8 April 2014 Allan Bødskov Andersen (Group Treasurer & Head of IR) Kristian Borbos (Lead IR Manager) Disclaimer Certain statements in this presentation are based on the beliefs of our
More informationPublic Works Financing
Public Works Financing Published monthly since 1988 by editor William G. Reinhardt PWFinance@aol.com Reprinted from February, 2011 Volume 257 Why TIFIA Matters For Transportation By Fred Kessler, Nossaman
More informationPreparing A Financing Proposal
Preparing A Financing Proposal Innovation PEI 94 Euston Street, PO Box 910, Charlottetown, Prince Edward Island, Canada C1A 7L9 Telephone: 902 368 6300 Facsimile: 902 368 6301 Toll free: 1 800 563 3734
More informationBelgium in international tax planning
Belgium in international tax planning Presented by Bernard Peeters and Mieke Van Zandweghe, tax division at Tiberghien Belgium has improved its tax climate considerably in recent years. This may be illustrated
More informationThe future of PPP Financing
Sumitomo Mitsui Banking Corporation Europe Limited EPEC Private Sector Forum- Financing Future Infrastructure The future of PPP Financing 6th June 2012 Sumitomo Mitsui Banking Corporation SMBC is a global
More informationMay 2014. tpp 14-03. Government Guarantee Fee Policy for Government Businesses. Policy & Guidelines Paper
May 2014 14-03 Government Guarantee Fee Policy for Government Businesses Policy & Guidelines Paper 1. Preface The Government Guarantee Fee Policy is a component of the NSW Government s Commercial Policy
More informationThe impact of different currency options on the Scottish Life Insurance sector. by IFoA Scottish Independence Working Party
The impact of different currency options on the Scottish Life Insurance sector by IFoA Scottish Independence Working Party June 2014 The impact of different currency options on the Scottish Life Insurance
More informationA roadmap for funding your business
A Citibank Resource for Your Business A roadmap for funding your business Jupiterimages/BananaStock/Thinkstock Successfully launching a new business takes a good deal of skill and hard work. It also requires
More informationAn Roinn Coimirce Sóisialaí Department of Social Protection
Ó Cuív launches new Sovereign Annuities Initiative to provide greater opportunities for Irish Pension Schemes The Minister for Social Protection, Éamon Ó Cuív T.D. said this morning (17 December 2010)
More informationMetsä Board Debt investor presentation Q2/2015. 6 August 2015
Metsä Board Debt investor presentation Q2/2015 Strong financing situation continues EUR million 1000 750 Net debt Gross debt EUR 671 million and net debt EUR 389 million at the end of Q2/2015 (EUR 319
More informationBond Investing. Plain Talk Library
Plain Talk Library Contents Introducing bonds 1 What is a bond? 1 Types of bonds 3 How do bonds work? 4 How interest rates affect bond prices 5 Investing in bonds 6 Bond credit ratings 9 What role do bonds
More informationMeet challenges head on
Meet challenges head on Deal Advisory / Global We can help you master Financial Restructuring. Enhancing value through financial restructuring. / 1 Your vision. Our proven capabilities. Despite its challenges,
More informationA QUICK GUIDE TO PREPARING A FINANCING PROPOSAL
A QUICK GUIDE TO PREPARING A FINANCING PROPOSAL FOR PRINCE EDWARD ISLAND SMALL BUSINESS Page1of5 Bankers are just like other entrepreneurs; they seek new clients and would not stay in business if they
More informationNon-Government-Guaranteed Bonds in the Petroleum Fund - NBIM
Page 1 of 7 Non-Government-Guaranteed Bonds in the Petroleum Fund From 2002, the Government Petroleum Fund will be investing a large portion of the portfolio in non-government bonds. The benchmark index
More informationTraffic and Revenue Forecasting for Privately Funded Transport Projects
Traffic and Revenue Forecasting for Privately Funded Transport Projects Dr Alan Brett and Mr Peter Snelson WS Atkins Introduction The private sector has an increasing role in the provision and financing
More informationDebt Financing for MP2030
CHAPTER 7 FUNDING ASSESSMENT 7.1 Under the Airport Authority Ordinance, AAHK is required to conduct its business according to prudent commercial principles. It has maintained an efficient capital structure
More informationMediterranean Guarantees
A newsletter on risk mitigation instruments for infrastructure investment in the Mediterranean Issue 2, October 2013 The Investment Security in the Mediterranean (ISMED) Support Programme seeks to increase
More informationLABOUR S PLAN FOR A STRATEGIC INVESTMENT BANK
LABOUR S PLAN FOR A STRATEGIC INVESTMENT BANK Table of Contents Executive Summary...3 Overview...3 Operation...3 Introduction...5 An investment economy...5 The Long-term Case for a Strategic Investment
More informationFinancial Instruments provided by the European Investment Bank (including Risk Sharing Finance Facility)
Financial Instruments provided by the European Investment Bank (including Risk Sharing Finance Facility) M. D hooge Financial instruments for Innovations, Research and Development 30 November 2009, Prague
More informationSPEAKER EBOOK. Some of our key speakers share their thoughts, concerns and expectations for the market leading up to the conference
SPEAKER EBOOK Some of our key speakers share their thoughts, concerns and expectations for the market leading up to the conference Discover what these key names have said about the market inside: Jose
More informationAn ESOP is a very flexible instrument that uses tax-deductible or tax-free dollars to achieve a variety of corporate objectives, as outlined below:
Summary of ESOP Uses An ESOP is a very flexible instrument that uses tax-deductible or tax-free dollars to achieve a variety of corporate objectives, as outlined below: 1. Provide a market (at fair-market
More information- Short term notes (bonds) Maturities of 1-4 years - Medium-term notes/bonds Maturities of 5-10 years - Long-term bonds Maturities of 10-30 years
Contents 1. What Is A Bond? 2. Who Issues Bonds? Government Bonds Corporate Bonds 3. Basic Terms of Bonds Maturity Types of Coupon (Fixed, Floating, Zero Coupon) Redemption Seniority Price Yield The Relation
More informationEIB s Debt Financial Instruments under the Connecting Europe Facility
EIB s Debt Financial Instruments under the Connecting Europe Facility 2015 CEF Energy Info Day Brussels, 16 th March 2015 C Murphy & A Zambrano European Investment Bank 1 A short outline CEF Overview of
More informationAustralia s B20 2014: Infrastructure Investment Options
Australia s B20 2014: Infrastructure Investment Options Coordinating Chair: Michael Smith Chief Executive Officer, ANZ Bank Co-Chair (West): Peter Sands Group Chief Executive, Standard Chartered MEASURES
More informationBank of America Merrill Lynch Banking & Insurance CEO Conference Bob Diamond
4 October 2011 Bank of America Merrill Lynch Banking & Insurance CEO Conference Bob Diamond Thank you and good morning. It s a pleasure to be here and I d like to thank our hosts for the opportunity to
More informationGUIDE TO SYNDICATED LEVERAGED FINANCE
GUIDE TO SYNDICATED LEVERAGED FINANCE CONTENTS Clause Page 1. Introduction... 1 2. Types Of Senior Leveraged Facilities Commonly Syndicated... 1 3. Parties To A Senior Syndicated Leveraged Facility...
More informationVanguard UK Short-Term Investment Grade Bond Index Fund
Vanguard UK Short-Term Investment Grade Bond Index Fund May 2013 LAUNCH BRIEFING Fund summary The Vanguard UK Short-Term Investment Grade Bond Index Fund expands the low-cost asset allocation building
More informationOUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS
These Guidelines have been issued by the Insolvency Service and endorsed by the Bank of Mauritius. OUT-OF-COURT RESTRUCTURING GUIDELINES FOR MAURITIUS 1. INTRODUCTION It is a generally accepted global
More informationInfrastructure Investing: In a class of its own?
Infrastructure Investing: In a class of its own? Infrastructure Investing: In a class of its own? Investing in infrastructure assets is a relatively new strategy that many non- Dennis Martin U.S. institutional
More informationRULES ON MANAGEMENT OF FOREIGN CURRENCYASSETS OF THE STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN
RULES ON MANAGEMENT OF FOREIGN CURRENCYASSETS OF THE STATE OIL FUND OF THE REPUBLIC OF AZERBAIJAN Including the addendums and amendments according to the Decrees of the President of the Republic of Azerbaijan
More informationPriority Senior Secured Income Fund, Inc.
Priority Senior Secured Income Fund, Inc. This material is neither an offer to sell nor the solicitation of an offer to buy any security. Such an offer can be made only by prospectus, which has been filed
More informationUnderstanding Fixed Income
Understanding Fixed Income 2014 AMP Capital Investors Limited ABN 59 001 777 591 AFSL 232497 Understanding Fixed Income About fixed income at AMP Capital Our global presence helps us deliver outstanding
More informationGebze Izmir Motorway & Izmit Bay Crossing Project
Gebze Izmir Motorway & Izmit Bay Crossing Project F.Mehmet Coşan CFO Haluk BÜYÜKBAŞ Secretary General, TCA Gebze Orhangazi Izmir Project is the landmark transaction for the infrastructure sector in Turkey
More informationishares IV Public Limited Company
ishares IV Public Limited Company (An umbrella investment company with variable capital and having segregated liability between its Funds incorporated with limited liability in Ireland under registration
More information2. UK Government debt and borrowing
2. UK Government debt and borrowing How well do you understand the current UK debt position and the options open to Government to reduce the deficit? This leaflet gives you a general background to the
More information1.1. UNDERSTANDING THE IMPORTANCE OF RAISING FUND
1.1. UNDERSTANDING THE IMPORTANCE OF RAISING FUND Raising Fund for a project seems to be one of the most complicated and difficult task to be successfully completed. It is the core or the essence for realization
More informationDTI Consultation on Proposals for a Special Administrator Regime for Energy Network Companies Ofgem s Response
DTI Consultation on Proposals for a Special Administrator Regime for Energy Network Companies Ofgem s Response June 2003 Introduction Ofgem welcomes the DTI consultation on proposals for a special administrator
More informationRisk Management. Risk Identification
Management This part provides guidance on the treatment of risks on a PPP project, and; Identifies the major risks common to many PPP projects across all sectors; Allocates the identified risks between
More informationThe Business Case For SBA 7a Lending For Community Banks
The Business Case For SBA 7a Lending For Community Banks How Community Banks Can Prudently Make Loans to Small Business By: Joanne Thompson SBA OneSource, LLC This paper examines the business reasons for
More informationWELCOME TO THE AIRBUS GROUP UK RETIREMENT PLAN
WELCOME TO THE AIRBUS GROUP UK RETIREMENT PLAN Investment guide The is an important part of your reward package. This guide aims to help you choose the funds in which to invest your personal Retirement
More informationFixed income benchmarks Time to think again?
February 2013 Fixed income benchmarks Time to think again? There are a number of drawbacks to the use of traditional fixed income benchmarks. As a consequence, some fixed income managers are reappraising
More informationDebt Management Policy
Debt Management Policy Introduction One of the keys to sound financial management is the development of a debt policy. This need is recognized by bond rating agencies, and development of a debt policy
More information-Translation- 2. Related Parties Vintage Engineering Public Company Limited ( Company or VTE ) Green Earth Power (Thailand) Company Limited ( GEP )
Information Memorandum of Vintage Engineering Public Limited Company Regarding Related Transaction on the Rendering of Construction Service for The 220MW Solar Power Plant Project located in Minbu, Myanmar
More informationBERYL Credit Pulse on High Yield Corporates
BERYL Credit Pulse on High Yield Corporates This paper will summarize Beryl Consulting 2010 outlook and hedge fund portfolio construction for the high yield corporate sector in light of the events of the
More informationProposal by the Managing Director for a Financial Assistance Facility Agreement (FFA) with the Hellenic Republic
14 August 2015 Proposal by the Managing Director for a Financial Assistance Facility Agreement (FFA) with the Hellenic Republic 1. Background On 8 July 2015, the Hellenic Republic ( Greece ) made an official
More informationShort-Term and Long-Term Rating Relationships
Short-Term and Long-Term Rating Relationships The following policy examines the rationale for DBRS s use of two different scales for rating shortand long-term obligations, the similarities and contrasts
More informationAgreements, bonds and guarantees
Agreements, bonds and guarantees SPV Formation The Special Project Vehicle (SPV) may take a variety of forms, including a corporation, limited liability company, general partnership, limited partnership,
More informationThe Rangers Community Share Issue
The Rangers Community Share Issue Intro We are asking people to invest in a fund which has the sole purpose of acquiring a significant stake in the Club. Why We believe that the Club is best owned democratically
More informationEU RESPONSIBLE LENDING STANDARDS FOR HOME LOANS
25 August 2009 EU RESPONSIBLE LENDING STANDARDS FOR HOME LOANS I. PRELIMINARY REMARKS 1. The objective of the Responsible Lending Standards for Home Loans is to promote and strengthen the provision of
More informationMASSACHUSETTS BAY TRANSPORTATION AUTHORITY Debt Issuance and Management Policy June 20, 2016
MASSACHUSETTS BAY TRANSPORTATION AUTHORITY Debt Issuance and Management Policy June 20, 2016 a) Purpose for Policy and Debt; Use of Debt Proceeds The purpose of this policy is to establish a framework
More informationThe buck stops here: Vanguard money market funds
The buck stops here: Vanguard money market funds Vanguard commentary September Executive summary. Money market funds play an important role for Vanguard clients, providing a high-quality and liquid investment
More informationPublic Offer on Eiffage
Public Offer on Eiffage Creation of a leading Group in the Construction sector Important notice This presentation has been prepared by Sacyr Vallehermoso solely for the purpose of presenting the proposed
More informationeeef European Energy Efficiency Fund
eeef European Energy Efficiency Fund Agenda 1 introduction to eeef - key elements 2 eeef investments: eligibility, process and project structures 3 Case studies 4 Final Remarks 2 1a eeef at a glance Objective
More informationWhy high-yield municipal bonds may be attractive in today s market environment
Spread Why high-yield municipal bonds may be attractive in today s market environment February 2014 High-yield municipal bonds may be attractive given their: Historically wide spreads Attractive prices
More informationPublic Sector Comparator for Highway PPP Projects. Henry Kerali Lead Transport Specialist
Public Sector Comparator for Highway PPP Projects Henry Kerali Lead Transport Specialist Presentation Outline Purpose and Definition of PSC Basis for comparison between Public v. Private Valuing risk Characteristics
More informationPublic-Private Partnerships
Public-Private Partnerships Closing Critical Issues Washington, Background In limited recourse finance, the primary source of debt service is the cash flow generated by the Project will evaluate all factors
More informationFinancing PPPs: Project Finance June 2006
Financing PPPs: Project Finance June 2006 Index Section I. Section II. Section III. Project Finance Spanish Market Advantages Risk Matrix P. 2 Section I Project Finance Project Finance Definition Definition:
More informationAvailability Payment Mechanisms For Transit Projects ADVISORY
Availability Payment Mechanisms For Transit Projects ADVISORY Agenda Availability Payments Overview Structure Financial Implications Case Study Additional Considerations KPMG Infrastructure 2 What is an
More informationFixed-income opportunity: Short duration high yield
March 2014 Insights from: An income solution for a low or rising interest-rate environment Generating income is a key objective for many investors, and one that is increasingly difficult to achieve in
More informationCONTRACTS FOR DIFFERENCE
CONTRACTS FOR DIFFERENCE Contracts for Difference (CFD s) were originally developed in the early 1990s in London by UBS WARBURG. Based on equity swaps, they had the benefit of being traded on margin. They
More informationInfrastructure Development Funding and Financing
Infrastructure Development Funding and Financing 09 December 2013 2 Presentation outline 1. Role of infrastructure development 2. Public sector infrastructure investment 3. Funding options i. Recent airport
More informationInvestor Guide to Bonds
Investor Guide Investor Guide to Bonds threadneedle.com Introduction Why invest in bonds? Although your capital is normally considered safe in a traditional deposit account, low interest rates have eroded
More informationMLC MasterKey Unit Trust Product Disclosure Statement (PDS)
MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take
More informationHow To Understand The Turkish Economy
BRSA Bank Only Macro Outlook Q1 GDP growth at 3.2%, mostly backed by net exports. Budget deficit was TRY 6.7 billion in H1 12, one third of Latest GDP figure is supportive of the soft landing the government
More informationBusiness Studies - Financial Planning and Management Study Notes. Financial Planning and Management Study Notes:
Business Studies - Financial Planning and Management Study Notes Financial Planning and Management Study Notes: The Role of Financial Planning: The strategic role of financial management: Organisational
More informationBS2551 Money Banking and Finance. Institutional Investors
BS2551 Money Banking and Finance Institutional Investors Institutional investors pension funds, mutual funds and life insurance companies are the main players in securities markets in both the USA and
More informationReal Estate Investment Trusts (REITs): Tax Policy Rationale
2013 Number 2 Real Estate Investment Trusts (REITs): Tax Policy Rationale 69 Real Estate Investment Trusts (REITs): Tax Policy Rationale Deirdre Donaghy Business Tax Team, Fiscal Policy Division, Department
More informationOffice of Economic Development Finance Infrastructure Bank Paper
White Paper Infrastructure Banks A national infrastructure bank has been proposed regularly over the past several years; governors in Massachusetts and New York have proposed or funded such banks; and
More informationPublic investment: recording in EDP statistics and treatment under the SGP
Public investment: recording in EDP statistics and treatment under the SGP Lourdes Prado Ureña 1 1 Eurostat, Luxembourg, Luxembourg; Lourdes.prado-urena@ec.europa.eu Abstract This paper provides an overview
More informationHSBC Global Investment Funds. Global Fund Solutions
HSBC Global Investment Funds Global Fund Solutions Introduction At HSBC Global Asset Management, we bring you the best of what our multi-specialist investment teams have to offer. HSBC Global Investment
More informationPRESIDIO PARKWAY FINANCIAL PROPOSAL 2.1.2. FINANCIAL PROPOSAL EXECUTIVE SUMMARY GOLDEN LINK PARTNERS
2.1.2. EXECUTIVE SUMMARY The Presidio Parkway Project (the Project ) is a landmark transaction in a high profile location and as the Project is the first transportation P3 in the State, its success is
More informationNMRC AND THE NIGERIAN MORTGAGE MARKET:
NMRC AND THE NIGERIAN MORTGAGE MARKET: An Intermediate Step to a full Secondary Mortgage Market 2014 CAPITAL MARKET COMMITTEE (CMC) RETREAT & CONFERENCE Sonnie Ayere Interim CEO, NMRC Chairman, Dunn Loren
More informationBonds, in the most generic sense, are issued with three essential components.
Page 1 of 5 Bond Basics Often considered to be one of the most conservative of all investments, bonds actually provide benefits to both conservative and more aggressive investors alike. The variety of
More informationA GUIDE TO FLOATING RATE BANK LOANS:
Contact information: Advisor Services: (631) 629-4908 E-mail: info@catalystmf.com Website: www.catalystmf.com A GUIDE TO FLOATING RATE BANK LOANS: An Attractive Investment for a Rising Interest Rate Environment
More informationPlease see below for the current credit ratings of Santander UK:
Santander UK Santander UK is regulated on a standalone basis by the United Kingdom Financial Services Authority. The bank is UK focused with more than 95% of assets UK based. In the UK, the bank has a
More informationBusiness Finance Advice Scheme: FAQs
Business Finance Advice Scheme: FAQs Q. Why was the Business Finance Advice Scheme created? The Business Finance Advice kitemark scheme helps businesses find professionally qualified accountants who are
More informationGuide to an Endowment Policy
Guide to an Endowment Policy What is an Endowment policy? What are the different types of Endowment policies? What is a With Profits Investment? How are bonuses calculated? What are my options if I need
More informationValue added tax on financial services 1
Value added tax on financial services 1 1. Background Financial services are exempted from value added tax. Proposition No. 1 (2012 2013) to the Storting; Bill and Draft Resolution on Taxes, discussed
More informationFinancing PPPs with project bonds
European PPP Expertise Centre European PPP Expertise Centre European PPP Expertise Centre European PPP Expertise Centre European PPP Expertise Centre Financing PPPs with project bonds Issues for public
More informationTREASURY MANAGEMENT STRATEGY 2008/2009
APPENDIX 1 TREASURY MANAGEMENT STRATEGY 2008/2009 Treasury Limits for 2008/09 to 2010/11 It is a statutory duty under s.3 of the Local Government Act 2003, and supporting regulations, for the Council to
More informationEach year, millions of Californians pursue degrees and certificates or enroll in courses
Higher Education Each year, millions of Californians pursue degrees and certificates or enroll in courses to improve their knowledge and skills at the state s higher education institutions. More are connected
More informationARC Assigns BBB Rating to Italy
ARC Assigns BBB Rating to Italy ISSUER RATINGS DATE Republic of Italy August 28, 2015 ISSUER RATINGS - FOREIGN CURRENCY Medium and Long Term BBB (BBB, Stable) ISSUER RATINGS - LOCAL CURRENCY Medium and
More informationlargeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904
largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What
More informationTraditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash.
Asset Classes Traditionally pension schemes invested in four main asset classes: Shares (Equities or Stocks), Bonds, Property and Cash. Shares (also called Equities or Stocks) are shares bought in quoted
More informationThe Effects of Funding Costs and Risk on Banks Lending Rates
The Effects of Funding Costs and Risk on Banks Lending Rates Daniel Fabbro and Mark Hack* After falling for over a decade, the major banks net interest margins appear to have stabilised in a relatively
More informationThe main points are: The Business Plan How To Write It. History of your Business
The Business Plan How To Write It A business plan has nine key sections. Within each of the following sections there is a list of points that should be covered fully backed up with detailed information
More informationGuide to Retirement Planning 2014/15
Guide to Retirement Planning 2014/15 Retirement isn t what it used to be. In many ways it is better: people are living longer and enjoying healthier and more active retirement years. On the financial side,
More informationDEBT MANAGEMENT POLICY
DEBT MANAGEMENT POLICY This policy sets forth the principles that will govern the use of debt to finance University capital projects and assigns responsibilities for the management of University debt.
More informationMoney Market Funds Helping Businesses Manage Cash Flow
Money Market Funds Helping Businesses Manage Cash Flow Since its inception, the U.S. Chamber s Center for Capital Markets Competitiveness (CCMC) has led a bipartisan effort to modernize and strengthen
More informationAccess to Finance Guide: 1. Bank Finance Options
Access to Finance Guide: 1. Bank Finance Options Overdrafts An overdraft is a flexible way for you to manage short-term borrowing requirements. Business overdrafts are traditionally easy to arrange and
More informationSimplicity in the financial sector
Simplicity in the financial sector Ladies and gentlemen, Thank you for inviting me to speak at the Risk Minds conference today, also as this enables me to congratulate you on its 20 th edition. Twenty
More informationfor Analysing Listed Private Equity Companies
8 Steps for Analysing Listed Private Equity Companies Important Notice This document is for information only and does not constitute a recommendation or solicitation to subscribe or purchase any products.
More informationCITIZENS PROPERTY INSURANCE CORPORATION. INVESTMENT POLICY for. Claims Paying Fund (Taxable)
CITIZENS PROPERTY INSURANCE CORPORATION INVESTMENT POLICY for Claims Paying Fund (Taxable) INTRODUCTION Citizens is a government entity whose purpose is to provide property and casualty insurance for those
More informationReverse Mortgages A Source of Funds for Retirement?
Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a
More informationInvestment and Investment Finance in Croatia, how can the EIB contribute? Dario Scannapieco and Debora Revoltella European Investment Bank
Investment and Investment Finance in Croatia, how can the EIB contribute? Dario Scannapieco and Debora Revoltella European Investment Bank 24 March 2014 Outline EU and Croatia key challenges The Investment
More informationA CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT
M. OOZEER A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT 14 May 2015 2 A CONSOLIDATED VERSION OF THE PUBLIC DEBT MANAGEMENT ACT Act No. 5 of 2008 [Amended 14/2009, 10/2010, 36/2011, 38/2011,
More informationTax, Legal, Bookkeeping & Payroll Services 2015 kpmg.hr
KPMG IN CROATIA Tax, Legal, Bookkeeping & Payroll Services 2015 kpmg.hr High performing people cutting through complexity to deliver informed perspectives and clear solutions that our clients and stakeholders
More informationSACRS Fall Conference 2013
SACRS Fall Conference 2013 Bank Loans November 14, 2013 Allan Martin, Partner What Are Floating Rate Bank Loans? Senior secured floating rate debt: Current Typical Terms: Spread: LIBOR + 5.00%-6.00% LIBOR
More informationInvestment Options and Risk
Investment Options and Risk Issued 1 July 2013 The information in this document forms part of the Product Disclosure Statement for the Military Superannuation and Benefits Scheme (MilitarySuper), third
More information