"Rajeev Sawant′s Infrastructure Investing is at the intersection of two of the most daunting challenges of the first half of the twenty–first century: the surge of infrastructure investing necessary to sustain population growth and to improve living standards, and finding long–tenor assets for pension funds and insurance companies on behalf of an aging population with ever longer life expectancies. By unlocking the alchemy of project finance, Sawant uniquely establishes infrastructure investing as an asset class. A must–read for all asset managers and any serious student of global investing."—Laurent L. Jacque, Walter B. Wriston Professor of International Finance & Banking, Fletcher School, Tufts University
Chapter 1 Infrastructure Demand and Investment Funds.
An Overview of Infrastructure Demand.
Availability of Funds.
Chapter 2 Infrastructure Asset Characteristics.
Defining Asset Classes.
Portfolio Perspective to Asset Classification.
Large Upfront Investments.
Strong Cash Flows.
Stable Cash Flows.
Value under Default.
Chapter 3 Equity Infrastructure Indexes.
Infrastructure Investment Options.
Equity Infrastructure Indices.
Macquarie Global Infrastructure Index.
S&P Global Infrastructure Index.
CSFB Emerging Markets Infrastructure Index.
Chapter 4 Debt versus Equity Mode of Investment.
Theories of Capital Structure.
Pecking Order Theory.
Free Cash Flow Theory.
Trade–off Theory of Capital Structure.
Governance and Capital Structure.
Private Equity Model of Investing.
Chapter 5 Infrastructure and the Threat of Holdup.
Transaction Cost Economics.
Solutions for the Holdup Problem.
Chapter 6 Infrastructure Assets and Political Risk.
Political Risk Typology.
Types of Risk.
Hedging Sovereign Hold–up.
Risk Mitigation Strategies.
Chapter 7 Project Finance and Infrastructure.
Project Finance Structure.
Project Finance versus Corporate Finance.
Ras Laffan Revisited.
Project Risk Analysis.
Credit Rating Agencies.
Using the Project Finance Structure.
Role of Government.
Chapter 8 Infrastructure Asset Valuation and Bond Returns.
An Overview of Infrastructure Valuation Theory.
Basel II and Infrastructure Lending.
Infrastructure Bond Returns.
Chapter 9 Case Studies.
Case Study 1: Aguas Argentinas S.A.
Case Study 2: Dabhol Power Company.
About the Author.