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Principles of Project Finance
book

Principles of Project Finance

by E. R. Yescombe
June 2002
Beginner
344 pages
11h 7m
English
Academic Press
Content preview from Principles of Project Finance
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 ...
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Publisher Resources

ISBN: 9780127708515