Bonetti, Veronica; Caselli, Stefano; Gatti, Stefano - In: Review of Financial Economics 19 (2010) 2, pp. 60-71
Offtaking agreements are an important risk transfer mechanism in project finance. However, they can also be thought of as a trade-off between lower market and higher counterparty risks. We use the case of the Quezon Power Ltd Co. to test the effect of higher counterparty risk on the cost of...