Infrastructure bond - Misplaced Pages

Infrastructure bond is a type of bond issued either by private corporations or by state-owned enterprises to finance the construction of an infrastructure facilities such as highways, ports, railways, airport terminals, bridges, tunnels, pipelines, etc. These bonds may be nominated both in local and in more stable foreign currencies, such as U.S. dollars or euros. Infrastructure bonds are popular in developing economies where there is a strong demand for infrastructure.

Operation

As a rule, the issuer of such securities, after the construction of an infrastructure facility is completed, receives it on a concession for some time (most often several decades) and collects the payments from the facility users (for example, a toll road). Quite often, the state (or several states), on the territory of which this object is being built, provides guarantees for the issued bonds, which makes them attractive to a larger number of market participants, as doing so reduces the risk. Due to the long payback period of infrastructure facilities, the bond circulation period is also quite long (often several decades); therefore, such bonds will mostly target institutional investors including insurance companies and pension funds. To make such bond even more attractive, the state authorities may arrange certain interest and tax benefits.

References

"Infrastructure Bonds with Tax Saving Benefits". Kotak Securities. 27 September 2014. Retrieved 13 August 2021.
^ "Bond Program to Finance Infrastructure". ifc.org. Retrieved 13 August 2021.
"AMP Capital Global Infrastructure Bond Strategy". AMP Capital. Retrieved 13 August 2021.
"Treasury Bonds | CBK". Central Bank of Kenya. Retrieved 13 August 2021.
"IFCI Tax Saving Long Term Infrastructure Bonds Series-I". IFCI Ltd. Retrieved 13 August 2021.
Chakrabarty, Amitava (27 March 2021). "Infrastructure Bond: Confusion over Tax-Saving Vs Tax-Free Bonds makes taxpayers pay more tax than benefit availed". The Financial Express. Retrieved 13 August 2021.

v t e Bond market
Bond Debenture Fixed income
Types of bonds by issuer	Agency bond Corporate bond Senior debt Subordinated debt Distressed debt Government bond Infrastructure bond Municipal bond Global bond
Types of bonds by payout	Accrual bond Auction rate security Commercial paper Consol Convertible bond Contingent Reverse Exchangeable bond Extendible bond Fixed rate bond Floating rate note Inverse Inflation-indexed High-yield debt Lottery bond Perpetual bond Zero-coupon bond
Bond options	Callable bond Convertible bond Embedded option Exchangeable bond Extendible bond Puttable bond
Bond valuation	Clean price Convexity Coupon Credit spread Current yield Dirty price Duration I-spread Mortgage yield Nominal yield Option-adjusted spread Risk-free bond Weighted-average life Yield curve Yield spread Yield to maturity Z-spread
Securitized products	Asset-backed security Collateralized debt obligation Collateralized mortgage obligation Commercial mortgage-backed security Mortgage-backed security
Institutions	Commercial Mortgage Securities Association (CMSA) International Capital Market Association (ICMA) Securities Industry and Financial Markets Association (SIFMA)

v t e Infrastructure
Bridge Canal Causeway Dam Drainage Footbridge Interchange Levee Overpass Pipeline Road Skyway Storm drain Tunnel
See also: Architecture Arena Civil engineering Construction Playground Public Stadium Theater Urban park

v t e Public infrastructure
Assets and facilities	Airports Bridges Broadband Canals Critical infrastructure Dams Electricity generation Energy development Hazardous waste Hospitals Levees Lighthouses Municipal solid waste Parks Ports Public housing Public spaces Public transport Public utilities Public works Rail transport Roads Sewage State schools Telecommunications Town square Wastewater treatment Water supply network Wind power
Concepts	Appropriation Infrastructure asset management Build–operate–transfer Design–build Earmark Engineering contracts Externality Fixed cost Government debt Infrastructure bond Life-cycle assessment Lindahl tax Maintenance, repair, and operations Natural monopoly Property tax Public capital Public finance Public good Public sector Public–private partnership Renovation Spillover Supply chain Taxation Upgrade
Issues and ideas	Air traffic control Brownfield land Bus rapid transit Carbon footprint Congestion pricing Containerization Ethanol fuel Fuel efficiency Fuel tax Groundwater High-speed rail Hybrid vehicles Land-use planning Mobile data terminal Pork barrel Recycling Renewable resources Reverse osmosis Smart grid Smart growth Stormwater Sustainable urban infrastructure Traffic congestion Transit-oriented development Urban sprawl Waste-to-energy Weatherization Wireless
Fields of study	Architecture Civil engineering Electrical engineering Mechanical engineering Public economics Public policy Urban planning
Examples	Akashi Kaikyō Bridge Autobahn Brooklyn Bridge Bus rapid transit systems Channel Tunnel Controlled-access highway systems Electric power transmission High-speed trains Hong Kong International Airport Hoover Dam Humber Bridge Kansai International Airport Millau Viaduct Nuclear power Offshore wind farms Panama Canal Port of Shanghai San Francisco–Oakland Bay Bridge Suez Canal Solar power Three Gorges Dam Trans-Alaska pipeline Transcontinental railroads

Categories:

Operation

See also

References