Infrastructure bond
Infrastructure bond is a type of bond issued both by private corporations and by state-owned enterprises to finance the construction of an infrastructure facility (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]
Overview
As a rule, the issuer of such securities, after the construction of an infrastructure facility is completed, receives it on a
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
References
- Kotak Securities. Retrieved 13 August 2021.
- ^ ifc.org. Retrieved 13 August 2021.
- ^ "AMP Capital Global Infrastructure Bond Strategy". AMP Capital. Retrieved 13 August 2021.
- ^ "Treasury Bonds | CBK". Central Bank of Kenya. Retrieved 13 August 2021.
- ^ "IFCI Tax Saving Long Term Infrastructure Bonds Series-I". IFCI Ltd. Retrieved 13 August 2021.
- ^ Chakrabarty, Amitava (27 March 2021). "Infrastructure Bond: Confusion over Tax-Saving Vs Tax-Free Bonds makes taxpayers pay more tax than benefit availed". The Financial Express. Retrieved 13 August 2021.