Access to Infrastructure Finance

In many developing countries, infrastructure has not developed as a viable asset class for financial institutions (such as banks, equity providers, and institutional investors). Access to long term financing is a critical issue in implementation of infrastructure projects. There are many inter-related reasons for this that include a shortage of long-term domestic currency finance, local banking market capacity and appetite, a lack of adequately developed capital and inter-bank markets, unavailability of government support mechanisms (such as guarantee facilities and viability gap mechanisms), an unsuitable regulatory framework to protect the interest of institutional investors, and a lack of viable project pipeline. Our work in this solution area looks to establish mechanisms and frameworks that can improve the flow of both domestic and foreign capital into infrastructure in a sustainable manner.