8.20 In response to changes in the global debt market conditions the Government has sought to encourage access to a wider range of sources of debt finance to secure long term debt on cost efficient terms. PF2 will, therefore, be structured in such a way that it facilitates access to the capital markets, capitalising on the appetite of institutional investors, or other sources of long term debt finance. Capital markets, whether public or private, have a deep pool of investors who are attracted to the relatively low risk infrastructure asset class. The large market capacity provided by the capital markets in competition with other sources of finance including traditional bank debt should reduce the cost of debt for projects.
8.21 Government has engaged directly with institutional investors, banks, credit rating agencies and the EIB to assess the range of alternative financing options available to support infrastructure delivery and the credit requirements and project characteristics required to meet investor requirements.