Infrastructure finance used to be so simple. Banks took on short-term bridge and construction risk; the capital markets took on long-term operational risk. Bank lending appetite for this risk was for five years with a two-year tail – anything longer than that was the preserve of the wrapped bond markets.
The prospect of more large-scale infrastructure assets being financed in the private sector has been seized upon by lending banks and capital market players as a key part of their near-term business strategies. But the infrastructure market...
