Tapping Capital Markets and Institutional Investors for Infrastructure Development

Mathieu Verougstraete () and Alper Aras ()
Additional contact information
Mathieu Verougstraete: Former staff of the Macroeconomic and Financing for Development Division of United Nations, Economic and Social Commission for Asia and the Pacific
Alper Aras: Former staff of the Macroeconomic and Financing for Development Division of United Nations, Economic and Social Commission for Asia and the Pacific

No WP/18/04, MPDD Working Paper Series from United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

Abstract: The paper studies the possibility of using capital markets to channel more resources for infrastructure development while mobilizing assets managed by institutional investors such as pension funds and insurance companies. To this end, the paper is structured as follows. First, it analyzes the level of capital market development in the region, and finds that markets are still at a nascent stage in many economies. Banks continue to dominate private financing in Asia and the Pacific. Second, it reviews the size of institutional investors in the region and suggests that prudential regulation might need to be adjusted to enable more infrastructure investments. Third, it highlights that different modalities are available to investors seeking infrastructure exposure and presents initiatives launched by different countries to support the development of infrastructure-related instruments. Fourth, the paper proposes a series of policy actions that governments could implement to further tap this source of financing. The paper concludes by proposing criteria to tailor the different options to each country’s circumstances.

Keywords: capital markets; infrastructure development; institutional investors; financing; Asia and the Pacific (search for similar items in EconPapers)
JEL-codes: F21 G15 G23 (search for similar items in EconPapers)
Date: 2018-05
New Economics Papers: this item is included in nep-sea
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.unescap.org/publications/mpfd-working- ... stors-infrastructure
Our link check indicates that this URL is bad, the error code is: 400 Bad Request

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:unt:wpmpdd:wp/18/04

Access Statistics for this paper

More papers in MPDD Working Paper Series from United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) Contact information at EDIRC.
Bibliographic data for series maintained by Macroeconomic Policy and Development Division, ESCAP ( this e-mail address is bad, please contact ).