5.22 A body of finance guidance issued by the Treasury covers issues such as strategies for managing inflation risk and technical aspects, for example the compensation payable to bond holders on early termination (application of the "modified Spens formula"). The guidance also sets out the voluntary code3 for the sharing of gains between the public and private sectors under any refinancing of early PFI projects.
3 Refinancing of early PFI transactions - Code of Conduct, 2002, HM Treasury