Debt contributions

Debt can be obtained from many sources, including commercial lenders, export credit agencies, bilateral or multilateral organisations, bondholders (such as institutional investors) and sometimes the host country government. The source of debt will have an important influence on the nature of the debt provided. Unlike equity contributions, debt contributions have the highest priority amongst the invested funds (e.g. senior debt must be serviced before any other payments are made). PPP generally involves the construction of high value, long life assets with stable revenues, and therefore seeks long-term, fixed interest debt.