Abstract
The relevance of the article is due to the need of using non-traditional tools for capital raising and hedging financial risks in Ukrainian conditions that allow investors to protect themselves against possible losses during the entire life cycle of the investment project. The study is based on the National Bank of Ukraine statistical data, data of Ukrainian commercial banks, as well as on the authors’ calculations based on empirical and economic-statistical methods. According to international practices, hybrid financial instruments were classified and the special aspects of their use in Ukraine were studied to manage the risks of project financing. Specific features of using the structured bonds for financing investment projects are determined based on the synthetic securitization scheme. The experience of Ukrainian banks was analyzed and the necessity to use financial instruments such as guarantees and letters of credit in risk management of project financing was substantiated. It has been established that forward contracts, currency swaps and over-the-counter currency options are the most acceptable instruments for hedging foreign exchange risks of project financing. Further studies of the problem should include the need for legislative regulation of using hybrid financial instruments, as well as methodological and regulatory support for the risk management of project financing at all stages of the investment project implementation.
Highlights
The need to increase the investment activity of domestic companies calls for the search of new forms and methods of attracting a good deal of investment resources to the national economy
The use of currency futures by investment companies when hedging project financing risks is Itshouldalsobenotedthatduringtheimplementing limited due to the fact that they circulate on the investment projects in order to increase the exchange market according to a standard specifieffectiveness of securitization risk management, cation, and they are mainly intended for currency the guarantees and credit derivatives used must be exchange and financial transactions for the purirrevocable, unconditional and directly related to pose of generating income
This research allows to draw a conclusion that in order to improve the investment climate and risk management of project financing in Ukraine, it is necessary to use more widely unconventional tools that allow investors to protect themselves against possible losses when implementing the investment project
Summary
The need to increase the investment activity of domestic companies calls for the search of new forms and methods of attracting a good deal of investment resources to the national economy. The overall investment climate is still unfavorable in the country due to the slow pace of economic reforms and increased political risks, and the investment attractiveness of many companies is low, which causes a significant increase in risks for all investment process participants. In this regard, there is a need of search and practical use of non-traditional, for Ukrainian conditions, tools for capital raising and hedging financial risks that allow investors to reduce risks and protect themselves against possible losses during the entire life cycle of the investment project. Use of hybrid financial instruments in domestic practice in order to implement large investment projects is becoming relevant
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