Financial Quotient

What are infrastructure bonds?

Infrastructure bonds refer to bonds issued to fund infrastructure projects. The bonds are usually long term in nature, big in issuance size due to the nature of infrastructure projects, and are accessible to institutional and individual investors.

Regular coupon payments and low default risk are usually associated with these bonds as the usual issuers include central governments, municipals and quasi-government agencies involved in these projects.

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A version of this article appeared in the print edition of The Sunday Times on June 03, 2018, with the headline 'What are infrastructure bonds?'. Print Edition | Subscribe