FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

LISTED COMPANIES

Submit Post
STOCK MARKET TRAINING
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post




Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer

Latest topics

» EXPOLANKA HOLDINGS PLC (EXPO.N0000)
by Hope123 Today at 5:22 am

» Losing GSP+: Petty political revenge or Sri Lanka's economy?
by soileconomy Today at 5:09 am

» A penny share that might work out in near future
by madukp Today at 3:48 am

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by Hairoos Yesterday at 10:06 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 9:06 pm

» PANASIAN POWER PLC (PAP.N0000)
by Good bad Yesterday at 8:29 pm

» Directors' Dealings 14/06/2021
by SAGA Yesterday at 6:59 pm

» TOP 10 Dividend Stocks
by lakmin Yesterday at 5:56 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Captain Yesterday at 5:37 pm

» Top Foreign Trading today - 14/06/2021
by SAGA Yesterday at 5:19 pm

» LANKA IOC PLC (LIOC.N0000)
by Pradeep90 Yesterday at 3:37 pm

» HATTON NATIONAL BANK PLC
by Eranx Yesterday at 12:24 pm

» ජිනීවා චන්දෙන් පසු හෙට මොකක් වෙයි ද ?
by samaritan Yesterday at 12:22 pm

» BUKI price comeing down
by Zahara khan Yesterday at 10:36 am

» B P P L HOLDINGS PLC (BPPL.N0000)
by arunaupendra Yesterday at 9:21 am

» Understanding inflation and share prices.
by dayandacool Yesterday at 6:53 am

» Stocks rose across Asian Markets after China & US agree to push forward trade, investment ties
by Wickyz Yesterday at 1:51 am

» Adani's entry followed by Indian CEOs discussion with Minister ANC
by Wickyz Yesterday at 1:30 am

» E B CREASY & COMPANY PLC (EBCR.N0000)
by Saman12 Yesterday at 12:08 am

» CEYLON TEA BROKERS PLC (CTBL.N0000)
by SAGA Sun Jun 13, 2021 2:19 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute


Submit Post

CHRONICLE ANALYTICS
All Share Index (ASI), S&P, Milanka Price Index (MPI), Moving Averages and all other analytical graphs and charts

Contribute

Twitter Feeds

You are not connected. Please login or register

FINANCIAL CHRONICLE™ » DAILY CHRONICLE™ » Sri Lanka infrastructure seen drawing private debt

Sri Lanka infrastructure seen drawing private debt

Go down  Message [Page 1 of 1]

Malika1990

Malika1990
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
Aug 10, 2012 (LBO) - Sri Lanka could use private financing to fund growing infrastructure requirements like toll roads in future given the inability of governments to meet all such funding needs, a Fitch Ratings official said.

Attractive infrastructure investment opportunities in Sri Lanka could draw local and foreign capital which could help underpin future growth, said Cynthia Howells, director of Global Infrastructure & Project Finance at Fitch Ratings New York.
"Private investment frees up governments to focus on the most difficult projects while the more straightforward but important ones can be funded by the private sector," she told a Fitch forum on infrastructure financing in developing countries.

"It could maybe accelerate the process of infrastructure development if many entities support different infrastructure projects at the same time," Howells said.

"We know from experience elsewhere in the world that governments can't do it all," she said.

Howells acknowledged that it may be cheaper for sovereigns to borrow and finance projects in the early phase of a country's infrastructure modernisation but noted private financing may be needed later on.

"The global experience is that governments can't do it all alone."

An important disadvantage of such funding models was their higher financial risk, if not backed by sovereign credit ratings.

Howells said that investment grade ratings would be required to attract private finance, citing Fitch's experience grading Latin American infrastructure projects with mostly local and not sovereign ratings.

"If the ratings are not investment grade even on a local scale, it's very hard to get those projects financed."

Credit agencies like Fitch all have well developed methods for analysing risks in infrastructure asset debt with experience across the globe involving both private and government sectors.

Howells said Fitch had no infrastructure analysts in Sri Lanka despite the huge infrastructure requirements in country.
Recent power cuts showed the demand for more power plants, while there was also demand for high-traffic roads outside Colombo and expanded rail travel along with additional airports, hospitals, schools and public housing.

Many infrastructure projects are in the planning stage in Sri Lanka or under construction. These include ports, airports, power plants, highways and rail networks.

Most such projects are funded by loans or grants from foreign governments and international aid agencies, but some have been delayed owing to difficulties in getting funds, government officials have said.

Howells said Sri Lanka could consider adopting the commercial bank loan and bond models for infrastructure debt financing used elsewhere in the world.

"Can Sri Lanka's business sector apply the financing structures which are successfully used in the rest of the world to attract capital needed in Sri Lanka?" she asked.

Typical terms for such infrastructure projects were 80 percent debt, consisting of loans or bonds, and 20 percent sponsor equity.

Investors are mainly institutional, such as government and corporate pension funds, insurance companies, and forward looking corporates like information technology firms.

Lending terms were usually 20-30 years which means investors were looking at long term prospects for debt repayment.

Cash flows from such projects go directly to special purpose vehicles set up for borrowing and are only used to repay debt.

Fitch rates only the debt instruments to fund infrastructure and the likelihood of default and not the project itself, Howells said.

Key rating drivers were completion risk, operational and revenue risk, debt structure, and debt service and counter-party risk

Howells said Sri Lanka's recent sovereign bond issue showed the rate was enough to attract private companies.

She said the private sector could consider whether it is possible for Sri Lanka to use financing structures found elsewhere, such as government finance combined with private debt, to build infrastructure like toll roads.

A planned expressway linking the capital Colombo to Kandy in the central hills could be a toll road as well as a proposed southward extension of the island's first toll expressway from Colombo to the southern port town of Galle.
http://www.lbo.lk/fullstory.php?nid=1725888373

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum