the larger players in the market (cf. §5.1.8). Therefore, actual project finance lend-
ing, as opposed to loan arrangement, is spread among a reasonably wide range of
banks.
§3.2 BOND ISSUES
A bond issued by a Project Company is basically similar to a loan from the bor-
rower’s point of view, but it is aimed mainly at the nonbanking market and takes
the form of a tradable debt instrument (cf. §5.2). The issuer (i.e., the Project Com-
pany) agrees to repay to the bond holder the amount of the bond plus interest on
fixed future installment dates. Buyers of project finance bonds are investors who
require a good long-term fixed-rate return without taking equity risk, in particu-
lar insurance companies and pension funds. (Note that a bond in this context
has ...