January 17, 2018 |
The use of institutional investment money to fund greenfield infrastructure initiatives in Latin America has developed in recent years, going from limited indirect funding channeled through infrastructure funds to a growing importance lent to project bonds and the emergence of more listed equity instruments.
When it comes to project bonds, more developers are coming to market to fund the construction phase, larger transactions are taking place, all at more competitive spreads and longer tenors than before.
The history of project bonds in Latin America, and even around the world, is still relatively new.
Latin America saw its first-ever cross border project bond issuance in 2012, when Peru’s
Despite still being mostly used for brownfield projects, project bonds are becoming a more attractive proposition to finance greenfield initiatives