Public-Private Partnerships: Capital Market Conditions and Alternative Finance Mechanisms for Australian Infrastructure Projects

2013 ◽  
Vol 19 (3) ◽  
pp. 335-342 ◽  
Author(s):  
M. Regan ◽  
P. E. D. Love ◽  
J. Smith
Keyword(s):  
Capital Market ◽  
Public Private Partnerships ◽  
Infrastructure Projects ◽  
Market Conditions ◽  
Alternative Finance

scholarly journals Crowdfunding in Saudi Arabia: A Case Study of the Manafa Platform

2019 ◽  
Vol 11 (11) ◽  
pp. 72
Author(s):  
Heba Gazzaz
Keyword(s):  
Saudi Arabia ◽  
Capital Market ◽  
Financial Support ◽  
Legal Framework ◽  
Start Up ◽  
The World ◽  
Alternative Finance

Crowdfunding is an innovative form of financial support that is increasingly used around the world. Crowdfunding can provide a new investment channel and help those with innovative ideas and start-up businesses to circumvent traditional financing struggles and secure alternative finance. This paper presents an overview of crowdfunding, its fundamentals, and its main participants. Specifically, it explores the characteristics of crowdfunding in Saudi Arabia by examining the first and successful crowdfunding platform (Manafa) to be licensed by the country’s capital market authority. This paper shows that the sole applicable model in Saudi Arabia is equity-based crowdfunding, and this is significantly controlled and operated under a more efficient legal framework than much foreign crowdfunding. However, the Saudi market would benefit from greater awareness of crowdfunding as a new investment channel, and from the introduction of the debt-based crowdfunding model in accordance with Saudi market regulations.

Colombia

2019 ◽  
pp. 108-128
Author(s):  
Jonas B. Bunte
Keyword(s):  
Capital Market ◽  
The Political ◽  
Infrastructure Projects ◽  
Political Landscape ◽  
Qualitative Evidence ◽  
The Government ◽  
The Capital Market

A Capital Coalition between Finance and Industry dominates the political landscape of Colombia, while Labor is comparatively marginalized. Both groups are alarmed by the prospect of increased Chinese competition. Moreover, both prefer the government to borrow from the capital market even if cheaper loans from public sources are available. Interviews suggest that Colombian politicians are well aware of the dominant groups’ preferences. Consequently, politicians are ready to act upon the interests of the Capital Coalition when making borrowing decisions. The qualitative evidence suggests that Chinese loan offers are significantly disadvantaged with respect to both loans for general budget expenditures and loans for financing specific infrastructure projects. As a result, Colombia has rejected several Chinese loan offers and instead relies on private creditors for its financing needs.

scholarly journals Factors Affecting the Indonesia Stock Exchange: A Multi-Index Approach

2020 ◽  
Vol 11 (2) ◽  
pp. 196
Author(s):  
Didik Susilo ◽  
Sugeng Wahyudi ◽  
Irene Rini Demi Pangestuti
Keyword(s):  
Capital Market ◽  
Stock Exchange ◽  
Composite Index ◽  
Market Conditions ◽  
Factors Affecting ◽  
Daily Data ◽  
Index Approach ◽  
The World ◽  
Exchange Condition ◽  
Regional Capital

This study examines the influence of world and regional capital market conditions on the Indonesian capital market (Indonesia Stock Exchange) condition. The DJIA (Dow Jones Industrial Average) index was used as a representative of the international capital market while the Hang Seng index and the Nikkei 225 index were used as a representative of regional capital market conditions. These two indices were chosen because the Japanese capital market was one of the most advanced capital markets in the world and the Hong Kong capital market, although not as big as Japan, still played an important role in the world. The data were obtained from Yahoo Finance during the period of 2014-2018. The dependent variable was the change in the JCI (Jakarta Composite Index), while the independent variables were changes in the index of DJIA, Nikkei 225 and Hang Seng index. Using daily data analyzed by the ARIMA method (1,1), it was found that there was a significant positive effect of DJIA with lag 1 and Hang Seng index on the JCI, but no significant effect was found from the Nikkei 225 index on the JCI.

scholarly journals Impacts of Climate Change and Remote Natural Catastrophes on EU Flood Insurance Markets: An Analysis of Soft and Hard Reinsurance Markets for Flood Coverage

Atmosphere ◽  
2020 ◽  
Vol 11 (2) ◽  
pp. 146 ◽  
Author(s):  
Max Tesselaar ◽  
W. J. Wouter Botzen ◽  
Jeroen C.J.H. Aerts
Keyword(s):  
Climate Change ◽  
Natural Disaster ◽  
Capital Market ◽  
Flood Risk ◽  
Change Scenario ◽  
Flood Insurance ◽  
Market Conditions ◽  
Insurance Premiums ◽  
Natural Catastrophes ◽  
Reinsurance Market

The increasing frequency and severity of natural catastrophes due to climate change is expected to cause higher natural disaster losses in the future. Reinsurance companies bear a large share of this risk in the form of excess-of-loss coverage, where they underwrite the most extreme portion of insurers’ risk portfolios. Past experience has shown that after a very large natural disaster, or multiple disasters in close succession, the recapitalization need of reinsurers could trigger a “hard” reinsurance capital market, where a high demand for capital increases the price charged by investors, which is opposed to a “soft” market, where there is a high availability of capital for reinsurers. Consequently, the rising costs of underwriting are transferred to insurers, which ultimately could trigger higher premiums for natural catastrophe (NatCat) insurance worldwide. Here, we study the vulnerability of riverine flood insurance systems in the EU to global reinsurance market conditions and climate change. To do so, we apply the “Dynamic Integrated Flood Insurance” (DIFI) model, and compare insurance premiums, unaffordability, and the uptake for soft and hard reinsurance market conditions under an average and extreme scenario of climate change. We find that a rising average and higher variance of flood risk towards the end of the century can increase flood insurance premiums and cause higher premium volatility resulting from global reinsurance market conditions. Under a “mild” scenario of climate change, the projected yearly premiums for EU countries, combined, are €1380 higher under a hard compared to a soft reinsurance capital market in 2080. For a high-end climate change scenario, this difference becomes €3220. The rise in premiums causes problems with the unaffordability of flood coverage and results in a declining demand for flood insurance, which increases the financial vulnerability of households to flooding. A proposed solution is to introduce government reinsurance for flood risk, as governments can often provide cheaper reinsurance coverage and are less subject to the volatility of the capital markets.

Factor analysis of critical success factors for water infrastructure projects delivered under public–private partnerships

2019 ◽  
Vol 24 (3) ◽  
pp. 338-357 ◽  
Author(s):  
Khotso Dithebe ◽  
Clinton Ohis Aigbavboa ◽  
Wellington Didibhuku Thwala ◽  
Ayodeji Emmanuel Oke
Keyword(s):  
Factor Analysis ◽  
Critical Success Factors ◽  
Success Factors ◽  
Public Private Partnerships ◽  
Private Capital ◽  
Water Infrastructure ◽  
Infrastructure Projects ◽  
Content Type ◽  
The Public ◽  
Critical Success

Purpose The role of public–private partnerships (PPP) as a strategic initiative to improve and accelerate service delivery in the form of newly built and revitalised water infrastructure assets in developing countries cannot be over-emphasised. Hence, the purpose of this study is to assess and highlight the importance of critical success factors for water infrastructure projects delivered under public–private partnerships. Design/methodology/approach A survey design was used and a questionnaire was administered to stakeholders who have participated in delivering water infrastructure assets in South Africa. Out of 150 administered questionnaires, only 91 were returned and usable for analyses, representing a 61 per cent response rate. The data gathered were then analysed using descriptive and factor analysis. Findings The study revealed that thorough planning for project viability, high levels of transparency and accountability and a legal framework stipulating policy continuity are the CSFs for delivering water infrastructure projects under the PPP initiative. The findings emerging from factor analysis owing to a close variance revealed the importance of the following grouped factors, namely, public cooperation, project viability and policy and legislation enhancement. Practical implications From the results, it is clear that the public sector, as the facilitator of infrastructure development, should create an environment that is conducive for private capital through political will and commitment and the enhancement of policy and legislation where there is no or minimal private participation. Originality/value Adequate infrastructure investment from private capital promises to flourish economically and improve the living conditions of the public in the cities and the country at large. To further guarantee the reality of PPPs at a local level, the host government must adequately engage and enlighten the public.

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