2.  Debt capital.

PPPs are highly leveraged using medium-term bank debt, project finance or long-term bonds. These securities are placed in debt markets and with private investors. Australian PPPs also make greater use of medium-term corporate debt than traditional long-term project finance. This permits investors to take advantage of short-term revaluation and refinancing although it requires consortia to assume refinancing risk and more frequent visits to the debt market than would be the case with conventional project finance.