Infrastructure Finance

Nippon Export and Investment Insurance

Nippon Export and Investment Insurance (NEXI) Singapore Branch engaged TradeRx to undertake a study related to Financing Infrastructure in Asia. The focus was on changing trend of infrastructure projects and its financing. This included challenges regarding financing energy projects such as bankability and project finance complexities. Key questions were activities and approaches of relevant players including commercial banks, funds, multilateral development banks and bilateral development finance institutions. In addition, a main outcome was the analysis of innovations and best practices in infrastructure finance.

Services

Analytics
Change & Operations

Background

Appropriate infrastructure is of critical importance for people and businesses, raising the supply-side capacity of economies which also benefit directly through job creation. Infrastructure is often regarded as synonymous with develo­pment. Infrastructure can create fundamental impacts regarding an inflow of firms and individuals, creating dynamic effects that may amplify or attenuate an initial growth impetus. However, there are significant infrastructure gaps in emerging markets and developing economies, in particular in Asia-Pacific. The financing perspective is key. 

Approach

The study followed a comparative research design, focusing on bilateral development finance institutions (DFIs), export-import banks and export credit agencies in the Asia-Pacific region including institutions from Australia, China, India, Korea and Thailand. Where relevant, the study looked at best practices from other leading agencies such as EKF in Denmark, EKN in Sweden and Export Development Canada. Experience from the Asian Development Bank, the Asian Infrastructure Investment Bank and DFIs such as KfW’s Deutsche Investitions- und Entwicklungsgesellschaft (DEG) was also taken into account.