Project Finance in the Energy Industry: New Debt-based Financing Models

Abstract

The paper aims to examine the development of new fmancing models for project fmance to attract private investors to finance large European energy infrastructure projects. In particular, the paper investigates the uniqueness of the project finance as a rapidly growing field in fmance, the financial characteristics of the project bond market as one of the vehicles for funding energy projects, and the role of the credit support provided by the European Investment Bank and the European Union to promote the bond-based fmancing schemes. The paper is organized as follows. Section 1 provides a general description of project finance. Section 2 identifies the economic reasons for using project finance and assesses the role of the project bond market to fund project finance in the energy industry. Section 3 evaluates the proposed financial support from the European Investment Bank and the European Union to boost the European project bond market. Final sections discuss policy implications and conclude. [ABSTRACT FROM AUTHOR] Copyright of International Business Research is the property of Canadian Center of Science & Education and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)