Financiamento de Longo Prazo: Explorando o Avanço Recente do Mercado de Debêntures Brasileiro

ABSTRACT Context: in Brazil, there was an expansion of private funding via bond issuances, especially since 2017. Before that period, the sources of long-term financing were concentrated on public funding. Objective: this study aims to explore the main factors that could have positively affect Brazilian bond market and if it would be possible to improve project financing through this debt instruments. Methods: using mixed methods with econometric tests and qualitative interview analysis, this study assesses which were the factors that supported this growth and if there is any difference across industries. Results: we found that a change in the market trend has indeed happened around 2017, and it was more pronounced in specific industries such as electricity. Interviewees suggested that increases in demand (possibly triggered by the reduction of public sources of funding and the fall in local interest rates) could be the main factors that supported this change in trend. Conclusions: therefore, this study reinforces the importance of local market conditions and government policies affecting the relative attractiveness of private versus public sources of corporate investment.

Crowdfunding for Infrastructure Project Financing

Infrastructure plays a pivotal role in national development. However, financing infrastructure projects becomes a major hurdle as it is often considered unbankable, high risk, and requires a long payback period. The use of crowdfunding as an alternative source for infrastructure project financing is flourishing, especially in European and American countries. In contrast, the utilization of crowdfunding for such purposes in Asian countries is very limited. Hence, this study reviews four crowdfunding platforms in Europe and America that have successfully raised capital for infrastructure projects which are Oneplanetcrowd, Convergence Finance, Citizenergy, and Infrashares. Learning from best practices of those platforms, policies, and regulations, the study proposes four crowdfunding business models to be implemented in Asian countries including (1) blended finance, (2) cross-border citizen funding, (3) commercial infrastructure financing, and (4) within country crowdfunding.

Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches

Aim. The presented study aims to investigate the use of the project financing mechanism to increase the investment activity of businesses and to identify opportunities for the allocation of cyclical risks and the corresponding development of project financing conditions.Tasks. The authors briefly overview the investment climate and investment activity of large businesses in Russia; provide a general description of the project financing mechanism in the implementation of investment projects and the allocation of risks among participants; consider the factor of price volatility and the proposed structuring of project financing with allowance for potential changes in prices for the project’s products.Methods. This study uses general scientific research methods (analysis, synthesis, induction, deduction), including analysis of public information through the example of major Russian companies, analysis of the key indicators of investment activity, analysis of risk allocation options in the financial flows of projects. Specific methods of financial analysis are also used to examine the results of the implementation of investment projects.Results. The key indicators of investment activity of the major Russian companies are presented. The possibility of using the mechanism of project financing and risk allocation among participants is determined.Conclusions. The investment activity of a considerable part of large Russian businesses is moderate. At the same time, there is a huge potential for growth using either internal funds (profits, accumulated cash balances) or project financing instruments. An example of using the mechanism of accelerated repayment of debt financing is provided.

WORLD MARKET OF PROJECT FINANCING: INDUSTRIAL STRUCTURE

Background. The domestic economy remains systemically underfunded due to lack of domestic financial resources and low investment attractiveness for foreign investors. The deepening of this problem is also caused by the situation with COVID-19, which has led to a decrease in global cash flows in the world. Obtaining cross-border investment flows in various sectors of the economy is associated with project financing, the development of co-financing and the use of PPPs. There is a question of research of modern tendencies of development of project financing which change according to present challenges, for the purpose of implementation of experience of foreign countries in the Ukrainian practice of development of investment activity. Analysis of recent research and publications has shown that in the context of abrupt changes, challenges and crises, leading to reduction oflong-term investments, the issue of using large-scale project financing to guarantee future profits (project financing) to develop priority sectors of the economy and individual regions of the country remains relevant. The aim of the work is to study the global industry trends in the development of project financing, taking into account the new socio-economic realities and justification of the feasibility of using world experience in Ukrainian practice. Materials and methods. The research methodology is based on a system of general scientific and special methods, in particular: abstract-logical, analysis, synthesis, comparison, grouping, generalization, graphical method, statistical methods for assessing the dynamics and structure. Legislative documents, scientific works of domestic and foreign scientists, statistical information became the information base of this research. Results. The modern tendencies of the global market of project financing, dynamics of its volumes and branch structure are investigated. The directions of project financing by the main sources are analyzed: bank loans and bond loans. The expediency of using international experience in the implementation of large-scale investment projects in various sectors of the economy of Ukraine using schemes and methods of project financing is substantiated. Conclusion. The introduction of experience in the implementation of investment projects using project financing schemes in Ukraine should contribute to the formation of demand for long-term investments, including foreign ones. This practice of project implementation allows to modernize the economy, increase the potential of regional development and integrate into global value chains.

FEATURES OF LAND VALUATION IN PROJECT FINANCING USING ESCROW ACCOUNTS

Проведен анализ текущей ситуации на первичном рынке жилой недвижимости в рамках перехода на новые условия финансирования жилищного строительства. Выявлены преимущества внедрения проектного финансирования, а также проблемы, ограничивающие его эффективность на основе основных тенденций и направлений применения проектного финансирования в России в строительстве, при реализации инфраструктурных проектов и в деятельности институтов развития по привлечению в систему проектного финансирования частных инвестиций. Показаны принципы построения схемы для строительного проекта, реализующейся с проектным финансированием по заранее составленной модели, где применены эскроу-счета. Предложен метод оценки земельного участка при проектном финансировании с использованием эскроу-счетов. Для оценки инвестиционной стоимости земли, то есть стоимости, при которой доход от приобретения земельного участка соответствует норме интереса, установленной инвестором, или стоимости, удовлетворяющей требования инвестора к доходности конкретного проекта, рекомендовано использовать три денежных потока, а именно денежный поток от инвестиционной деятельности, финансовой деятельности и поток на собственный капитал проекта. Проведен анализ опыта иностранных государств в вопросе формирования стоимости земли в черте города и влияющих на неё факторов. Показаны преимущества оценки земельного участка при проектном финансировании с использованием эскроу-счетов: удобство, гарантии; прозрачность и поддержка. We carried out the analysis of the current situation in the primary residential real estate market as part of the transition to new conditions for financing housing construction. We identified the advantages of introducing project financing, as well as problems limiting its effectiveness on the basis of the identified main trends and areas of application of project financing in Russia in construction, when implementing infrastructure projects and in the activities of development institutions to attract private investment into the project financing system. We show the principles of constructing a scheme for a construction project, implemented with project financing according to a pre-compiled model, where escrow accounts are used. A method for assessing a land plot for project financing using escrow accounts of the intended use is proposed. To assess the investment value of land, that is the value at which the income from the acquisition of a land plot corresponds to the rate of interest set by the investor, or the value that meets the investor's requirements for the profitability of a particular project, it is recommended to use three cash flows, namely, cash flow from investment activities, financial activities and the flow on equity capital of the project. We analyzed the development of foreign countries in the context of cost formation of land within the city and relevant factors influencing this cost. The advantages of assessing a land plot with project financing using escrow accounts have also been revealed: convenience, guarantees, transparency and support.

Grant support as an option for private sector solutions and systemic issues in the work of NPOs

This article examines the existing practice of participation by non-profit organizations (NPOs) in solving social policy problems, both in the West and in Russia, and makes a comparative analysis of Russian and foreign experience in this area. A separate section of the work is devoted to the study of the grant support system of NPIs in Russia. Systemic and private problems have been identified. Conclusions are drawn about imperfections of the emerging system of interaction between the State and NCBs, including in the area of project financing; and also about the need to create conditions for the replication of successful pilot projects of individual NCBs on the territory of the whole of Russia.

Internal control within the conditions of performance budgeting of universities

Subject. This article discusses the issues of improving the financing of universities, the development of performance-based budgeting to support their activities. Objectives. The article aims to assess the problematic aspects of financial support for the activities of higher education institutions, including using the performance-based budgeting, and identify the features of its implementation that affect the system of internal control at universities. Methods. For the study, we used the methods of analysis, grouping, comparison, and generalization. Results. The article summarizes the problematic provisions of financing the activities of universities, including the use of the performance-based budgeting method, and justifies the need to transform the internal control of universities. Conclusions. The article concludes that the development of the system of financing the activities of universities generally corresponds to foreign practice, although there are some shortcomings in the financing of higher education institutions. Internal control of universities should be modernized taking into account the strategic nature of the project financing process and the possibilities of digitalization of control activities.