CHAPTER 3.2  Unlocking the Capital Markets

Since 2002, the amount of commercial bank debt loaned to finance infrastructure has increased steadily year on year, even through the global economic crisis of 2007-08. During the same period, debt in the capital markets grew initially before reaching a plateau from 2003 to 2006, followed by a decline. These trends are illustrated in Figure 1, which shows the total amount of annual debt arranged for infrastructure projects across the globe.1 In this chapter we discuss the long-term trends in capital markets and how to unlock their potential for infrastructure finance.

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