Infrastructure bond
An issue funding roads, networks, housing and utilities, where payments come from the project's future revenue or from budget support.
How to read the number
The tenor is longer than an ordinary corporate issue because it is fitted to the payback period of the asset rather than to the issuer's plans.
When the metric lies
Project risk is concentrated at the start: until the object is built there is no revenue, and debt service rests on the sponsor's support rather than on the project itself.
Also known as: project bond