Page 71 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

Annex II: Types of financing

Characteristics of various types of financing 1
Type of Available to Short-term versus Cost Sectors Complexity Geography Potential
finance long-term scale $M
Used globally,
Transport,
Municipal Government Medium- to Low-medium schools, airports Low but mainly in 200 billion
bonds long-term the United
and seaports
States
Dim sum/ Corporate/ Long-term Low-medium Corporate Medium China 200 billion
Panda bonds government finance
Qualified
public Government- Public
infrastructure focused Long-term Low-medium infrastructure Medium United States 200 billion
bonds
Industrial Corporate/ Medium- to Airports/sewage
revenue Low-medium High United States 100–500
bonds government long-term facilities
Medium- to
TIFIA loans Government Low Infrastructure Low United States –
long-term
Tax
increment Corporate Medium-term Low-medium Construction Medium United States –
financing
Debt

Mainly
All sectors – developed
depending on countries, such
Institutional Mainly corporate Medium experience, as Canada,
investors focused, although Medium- to (high in may only Medium United 50–1 000
(incl. pension now entering the long-term the case of finance post- Kingdom,
funds) project market equity)
construction United States,
phase and the
Netherlands
Used globally,
although not
all banks/
Senior debt – Corporate/project Short- to long-term Low-medium All sectors Low countries 50–2 000
bank funding finance
provide long-
term debt
products
Project Project-focused Long-term Low-medium All sectors Low Globally used 200–2 000
bonds
Islamic-based
Renewables, countries (e.g.
Medium- to
Sukuk bonds Project-focused Low-medium social Low Middle East 50–1 000
long-term
development and Southeast
Asia)
Corporate/ Medium- to Corporate
Export credit High Medium Globally used 20–500
government long-term finance/projects
Utilities/sewage
Green bonds Corporate/project Long-term Medium-high facilities/ Medium Globally used 100–2 000
renewables
Social impact Corporate/project Long-term Low-medium Social High Globally used 0–100
bonds development

U4SSC: Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects 53