infrastructure

You might soon be able to invest in roads, railways and power lines in Africa, if there is support for a suggestion from Kenya’s central bank. So-called infrastructure bonds have recently been put forward by the UK and US, but cross-border bonds are rare. Quite how they would be priced is unclear.

From Reuters: Read more

Yikes. Hot on the heels of a similar American proposal, the UK government is considering issuing bonds to finance infrastructure projects.

Purchase of these so-called ‘green bonds’ would see the British public lending the government money for infrastructure, including low-carbon energy production. It is unclear at this stage how the bonds would pay. If they were performance-related, and infrastructure projects were loss-making, they would of course be a very poor buy. Read more