Institutional Investors Struggle To Find Investable Infrastructure Projects In Asia – CreditMatters

 Institutional Investors Struggle To Find Investable Infrastructure Projects In Asia

Institutional investors awash with funds bemoan the lack of commercially viable infrastructure projects in Asia. Pension and sovereign funds see infrastructure as a good fit because it offers long tenors and stable, predictable cash flows. Yet, many infrastructure projects aren’t currently attractive to institutional investors. First, the risk-reward equation does not justify the huge political and economic challenges of Asia’s emerging countries, on top of project construction, design, and technical risks. Second, the lack of a strong credit culture and legislative framework in some Asian countries make enforcement of contractual rights uncertain and untested. And lastly, banks have largely soaked up project financing, offering low financing costs that capital markets aren’t able or willing to match. Private-sector participation can lift a project’s credit standards, and ultimately its commercial viability. Infrastructure projects that provide social, economic, and environmental benefits to the wider community are particularly attractive to investors with ethical mandates.

 

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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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