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A recent Asian Development Bank publication estimates the large infrastructure financing requirement in Asia for the …. This paper analyzes a critical aspect of expanding private finance to infrastructure by examining the role of bank lending … guided more by macroeconomic factors and by the strength of their balance sheets. The key policy implications to unlock bank …
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We develop a double moral hazard model that predicts that the use of project finance increases with both the political risk of the country in which the project is located and the influence of the lender over this political risk exposure. In contrast, the use of project finance should decrease as...
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This paper examines the pricing of project finance (PF) and non-project finance (non-PF) loans and examines the factors that influence the borrower's choice between project financing and corporate financing. Using a sample of 210,273 syndicated loans closed between 2000 and 2014, we find that PF...
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