Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

Why is an infrastructure project justified for Longer tenor Debt funding as compared to other project financing proposals?

user-image
Question ajoutée par Mohammed Amin Petiwala , CFO , Osool Poultry SAOC
Date de publication: 2016/02/23
Manish Manchandya
par Manish Manchandya , Treasurer , Saudi Electric Company

An Infrastructure project generally has a longer life and generates returns over the life of the project. If we use a short term financing for a long term asset then it would asset -liability mismatch. It is preferable to match the two with longer dated financing for a longer dated asset. You can fund long dates asset with short term funding but then it would create refinancing risks and risks on the cash flows from the project

More Questions Like This