Infrastructure bond

Infrastructure bond is a type of bond issued either by private corporations or by state-owned enterprises to finance the construction of an infrastructure facilities such as highways, ports, railways, airport terminals, bridges, tunnels, pipelines, etc.[1][2] These bonds may be nominated both in local and in more stable foreign currencies, such as U.S. dollars or euros.[3] Infrastructure bonds are popular in developing economies where there is a strong demand for infrastructure.[4]

## Operation

As a rule, the issuer of such securities, after the construction of an infrastructure facility is completed, receives it on a concession for some time (most often several decades) and collects the payments from the facility users (for example, a toll road). Quite often, the state (or several states), on the territory of which this object is being built, provides guarantees for the issued bonds, which makes them attractive to a larger number of market participants, as doing so reduces the risk. Due to the long payback period of infrastructure facilities, the bond circulation period is also quite long (often several decades); therefore, such bonds will mostly target institutional investors including insurance companies and pension funds.[2] To make such bond even more attractive, the state authorities may arrange certain interest and tax benefits.[5][6]

## See also

* Build–operate–transfer
* Infrastructure-based development
* Infrastructure and economics
* Public–private partnership

## References

1. ↑ "Infrastructure Bonds with Tax Saving Benefits" (in en). Kotak Securities®. Kotak Securities. 27 September 2014. https://www.kotaksecurities.com/ksweb/Our-Offerings/Value-Added-Features/tax-saving-infrastructure-bonds.
2. ↑ 2.0 2.1 "Bond Program to Finance Infrastructure" (in en). International Finance Corporation. https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/bond+program+to+finance+infrastructure.
3. ↑ "AMP Capital Global Infrastructure Bond Strategy" (in en). https://www.ampcapital.com/au/en/investments/funds/global-fixed-income/amp-capital-global-infrastructure-bond-strategy.
4. ↑ "Treasury Bonds | CBK". Central Bank of Kenya. https://www.centralbank.go.ke/securities/treasury-bonds/.
5. ↑ "IFCI Tax Saving Long Term Infrastructure Bonds Series-I". IFCI Ltd. https://www.ifciltd.com/?q=en/content/series-i-0.
6. ↑ Chakrabarty, Amitava (27 March 2021). "Infrastructure Bond: Confusion over Tax-Saving Vs Tax-Free Bonds makes taxpayers pay more tax than benefit availed". https://www.financialexpress.com/money/income-tax/infrastructure-bond-confusion-over-tax-saving-vs-tax-free-bonds-makes-taxpayers-pay-more-tax-than-benefit-availed/2221755/.

* v
* t
* e

Bond market

* Bond
* Debenture
* Fixed income

Types of bonds by issuer|

* Agency bond
* Corporate bond
* Senior debt
* Subordinated debt
* Distressed debt
* Emerging market debt
* Government bond
* Municipal bond

Types of bonds by payout|

* Accrual bond
* Auction rate security
* Callable bond
* Commercial paper
* Consol
* Contingent convertible bond
* Convertible bond
* Exchangeable bond
* Extendible bond
* Fixed rate bond
* Floating rate note
* High-yield debt
* Inflation-indexed bond
* Inverse floating rate note
* Perpetual bond
* Puttable bond
* Reverse convertible securities
* Zero-coupon bond

Bond valuation|

* Clean price
* Convexity
* Coupon
* Credit spread
* Current yield
* Dirty price
* Duration
* I-spread
* Mortgage yield
* Nominal yield
* Option-adjusted spread
* Risk-free bond
* Weighted-average life
* Yield curve
* Yield spread
* Yield to maturity
* Z-spread

Securitized products|

* Asset-backed security
* Collateralized debt obligation
* Collateralized mortgage obligation
* Commercial mortgage-backed security
* Mortgage-backed security

Bond options|

* Callable bond
* Convertible bond
* Embedded option
* Exchangeable bond
* Extendible bond
* Puttable bond

Institutions|

(SIFMA)

* v
* t
* e

Infrastructure

* Bridge
* Canal
* Causeway
* Dam
* Drainage
* Footbridge
* Interchange
* Levee
* Overpass
* Road
* Skyway
* Storm drain
* Tunnel

* See also: Architecture
* Arena
* Civil engineering
* Construction
* Playground
* Stadium
* Theatre
* Urban park

* v
* t
* e

Public infrastructure

assets
and
facilities|

* Airports
* Bridges
* Broadband
* Canals
* Critical infrastructure
* Dams
* Electricity generation
* Energy development
* Hazardous waste
* Hospitals
* Levees
* Lighthouses
* Municipal solid waste
* Parks
* Ports
* Public housing
* Public spaces
* Public transport
* Public utilities
* Public works
* Rail transport
* Roads
* Sewage
* State schools
* Telecommunications
* Wastewater
* Water supply network
* Wind power

concepts|

* Appropriation
* Infrastructure asset management
* Build–operate–transfer
* Design–build
* Earmark
* Engineering contracts
* Externality
* Fixed cost
* Government debt
* Life-cycle assessment
* Lindahl tax
* Maintenance, repair, and operations
* Natural monopoly
* Property tax
* Public capital
* Public finance
* Public good
* Public sector
* Public–private partnership
* Renovation
* Spillover
* Supply chain
* Taxation
* Upgrade

issues
and
ideas|

* Air traffic control
* Brownfield land
* Bus rapid transit
* Carbon footprint
* Congestion pricing
* Containerization
* Ethanol fuel
* Fuel efficiency
* Fuel tax
* Groundwater
* High-speed rail
* Hybrid vehicles
* Land-use planning
* Mobile data terminal
* Pork barrel
* Recycling
* Renewable resources
* Reverse osmosis
* Smart grid
* Smart growth
* Stormwater
* Sustainable urban infrastructure
* Traffic congestion
* Transit-oriented development
* Urban sprawl
* Waste-to-energy
* Weatherization
* Wireless

fields
of study|

* Architecture
* Civil engineering
* Electrical engineering
* Mechanical engineering
* Public economics
* Public policy
* Urban planning

examples|

* Akashi Kaikyō Bridge
* Autobahn
* Brooklyn Bridge
* Bus rapid transit systems
* Channel Tunnel
* Controlled-access highway systems
* Electric power transmission
* High-speed trains
* Hong Kong International Airport
* Hoover Dam
* Humber Bridge
* Kansai International Airport
* Millau Viaduct
* Nuclear power
* Offshore wind farms
* Panama Canal
* Port of Shanghai
* San Francisco–Oakland Bay Bridge
* Suez Canal
* Solar power
* Three Gorges Dam
* Trans-Alaska pipeline
* Transcontinental railroads

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