EDHEC: The Pricing of Private Infrastructure Debt

This paper examines the drivers and evolution of credit spreads in private infrastructure debt. EDHEC asks two main questions:
1. Which factors explain private infrastructure credit spreads (and discount rates) and how do they evolve over time?
2. Are infrastructure project finance spreads and infrastructure corporate spreads driven by common factors?
EDHEC shows that common risk factors partly explain both infrastructure and corporate debt spreads. However, the pricing of these factors differs, sometimes considerably, between the two types of private-debt instruments.

Rapport d'EDHEC Singapour (84 pages).