Demand of Public-Private Partnerships for Infrastructure Bonds for Municipal Development

Abstract

The presented study examines the crucial problem of our time — the need to develop an infrastructure mortgage mechanism that would maintain and reproduce infrastructure resources.Aim. The study aims to consider the possibility of using infrastructure bonds for public-private partnership projects.Tasks. The authors determine the features of infrastructure bonds, briefly analyze foreign experience of their use, and outline an infrastructure municipal loan.Methods. This study uses general scientific methods of cognition to consider the possibility of using infrastructure bonds for public-private partnership projects.Results. Infrastructure bonds issued for public-private and municipal-private partnership projects can serve as a financial tool for infrastructure development or as a mortgage payment. Infrastructure bonds should be long-term and targeted, issued for the corresponding infrastructure projects. A competent approach to the preparation and implementation of an infrastructure loan requires the issuer’s professional agents to formulate the optimal loan concept and then put this concept into practice based on the optimal issuance parameters determined according to loan marketing among potential investors.Conclusions. The issuance of infrastructure bonds will make it possible to meet the demand of publicprivate partnerships for investment resources and sustainable investment projects. An infrastructure mortgage scheme should accommodate the interests of both the investor and infrastructure users.