Question

how do you feel about the City of Chicago utilizing an infrastructure bank to finance some of its capital projects – what do you think are the potential benefits and considerations of such a financing approach and are you generally supportive of it? After making your assessment, do a little research on your own to see if the reboot of the infrastructure trust succeeded. Does the Chicago experience with an infrastructure trust affect your view on its potential? (i.e., should other governments at state/local/federal levels pursue this approach?)  

Answer 1

Utilising Infrastructure banks fund for Infra Projects-

There are several banks providing finance for developing Infra projects. Raising capital from Infrastructure bank gives you lot of benefits like-opportunities of risk sharing, release of cash flows, extending loans and credit period, availability of liquidity, raising in short availability. Banks are treated as most trusted brands for raising capital over the world wide , but as an emerging scope in the area of financing there are multiple new scopes open in the field of financing like Mutual funds anchor investors, Public deposits, Export Credit agencies, ADR, Projects sponsors, Bonds(either Government or private). They are available at Interest rate lower than provided by Infrastructure banks with a fix time of Maturity. Infrastructure projects are return are available after a long period and require long time to complete project, it is better to opt for steady and lower interest rate financing. Leasing is also good option with lower cash out flow and tax benefits.