
This chapter reviews the private-sector debt markets for project finance, in par-
ticular commercial banks (cf. §3.1) and bond investors (cf. §3.2). The uses of mez-
zanine or subordinated debt (cf. §3.3), leasing (cf. §3.4), and vendor finance
(cf. §3.5) are also considered. Loans and guarantees provided by export credit
agencies and multilateral and bilateral development banks, mainly for projects in
developing countries where the private sector is not willing to assume the credit
risk in the country concerned, are discussed in Chapter 11 (but cf. §3.6).
Private-sector project finance debt is provided from two main sources—com-
mercial banks and bond ...