Infrastructure Project Finance and Project Bonds in Europe (eBook)

Emanuele Rossi is Associate Professor of Corporate Finance at the University of Milan-Bicocca, Italy. He has previously held various positions in other Italian Business schools and universities. His main research interests are corporate finance, financial market inefficiency, business valuation and portfolio management.Rok Stepic is a Project & Commodity Finance Analyst at UniCredit Bank, Austria. He has previous experiences as financial analyst at different business institutions after completing his studies in Banking and Financial Management at University of Ljubljana, Slovenia.

Cover 1
Half-Title 2
Title 4
Copyright 5
Contents 6
List of Figures 8
List of Tables 10
List of Abbreviations 12
Introduction 14
1 Project Finance 20
1.1 General overview 21
1.2 Main characteristics of project finance 24
1.3 Prerequisites to project finance 26
1.4 Public-private partnership 27
1.5 Key characteristics of infrastructure project assets 29
1.6 Financing the infrastructure projects 30
1.7 Greenfield versus brownfield projects 33
2 European Infrastructure Project Finance Market 38
2.1 Western Europe 39
2.1.1 Volumes, developments and financing in Western Europe 41
2.2 CEE 45
2.2.1 Volumes, developments and financing in CEE 46
2.3 Infrastructure sectors 51
2.3.1 Toll roads 52
2.3.2 Airports/ports 54
2.3.3 Healthcare facilities 55
2.4 Infrastructure: a new asset class? 56
3 Bank Conventional Lending versus Project Bond Solution 65
3.1 Banking landscape 66
3.2 Key characteristics of bond financing 69
3.3 Bank loan versus project bonds 71
4 The Europe 2020 Project Bond Initiative 76
4.1 General overview 77
4.2 Case studies – PBI 2020 pilot phase 81
4.2.1 Castor Gas Storage Spain 82
4.2.2 OFTO Greater Gabbard UK 83
4.2.3 A11 Belgian motorway project 85
4.2.4 A7 Autobahn PPP Germany 87
4.3 Case studies’ findings 88
4.4 Structural issues of the initiative 89
4.5 Concluding remarks 90
5 Case Studies in CEE 93
5.1 Introduction 94
5.2 The Slovakian case 95
5.2.1 Appetite for project bonds in Slovakia 96
5.2.2 Potential institutional investors 98
5.2.3 Slovakia R1 Motorway project deal refinancing 99
5.2.4 Envisaged D4 Motorway project in Slovakia 1
5.2.5 Reasons why Project bond should be the best solution for D4 Motorway 114
Conclusion 116
Bibliography 122
Index 125