Assess Commonwealth and State government infrastructure projects for their suitability for providing the Senior Debt facility including any lending conditions for each project. We acknowledge that the funding and related pricing mechanisms differ significantly from the arrangements currently on offer from the major debt providers. We recommend that the pricing points are discussed with the major infrastructure project equity holders and project arrangers to ensure that the business case is enhanced by the availability of stable long-term debt funding. Manage the funding mechanisms and flows to the infrastructure operators. Responsibility for all issuances and the associated legal, tax compliance and record keeping requirements. Facilitation of coupon payments/distributions to investors. Agree the level of senior level debt afforded to each infrastructure project through liaison/negotiation with the project bidding consortiums. Establish guidelines/rules for participation in the long-term debt facility. For instance it could be considered that where Project arrangers/managers or related investment managers are expected to receive ongoing management fees from the infrastructure project that minimum levels of equity holding apply (as a multiple of the level of recurrent fees to be received) as a condition of participation in the IDA long-term senior debt facility. Select and manage long-term debt exposures to a diversified range of infrastructure projects that collectively form a of investments in order to “pool” minimise any single asset default risk. Determine the level of participation (ie. provision of Senior Debt by IDA) made available to borrowers in each project with the bands of 20% to 40% of the total project bid price. In most cases there will be a need for further debt financing over and above the IDA sourced Senior Debt. This would be provided by the market as a form of lower ranked debt. The providers of the additional debt may suggest that IDA, as Senior Debt holder, has taken their place and that the subordinated debt they then provide would come at a higher price due to the existence of the IDA Senior Debt. In the first instance we indicate that there is currently no long-term debt financing of any substance for Australian infrastructure projects. As such it is a new source of funding. It is also currently the case that the provision of debt facilities at
Assess Commonwealth and State government infrastructure projects for their suitability for providing the Senior Debt facility including any lending conditions for each project. We acknowledge that the funding and related pricing mechanisms differ significantly from the arrangements currently on offer from the major debt providers. We recommend that the pricing points are discussed with the major infrastructure project equity holders and project arrangers to ensure that the business case is enhanced by the availability of stable long-term debt funding. Manage the funding mechanisms and flows to the infrastructure operators. Responsibility for all issuances and the associated legal, tax compliance and record keeping requirements. Facilitation of coupon payments/distributions to investors. Agree the level of senior level debt afforded to each infrastructure project through liaison/negotiation with the project bidding consortiums. Establish guidelines/rules for participation in the long-term debt facility. For instance it could be considered that where Project arrangers/managers or related investment managers are expected to receive ongoing management fees from the infrastructure project that minimum levels of equity holding apply (as a multiple of the level of recurrent fees to be received) as a condition of participation in the IDA long-term senior debt facility. Select and manage long-term debt exposures to a diversified range of infrastructure projects that collectively form a “pool” of investments in order to minimise any single asset default risk. Determine the level of participation (ie. provision of Senior Debt by IDA) made available to borrowers in each project with the bands of 20% to 40% of the total project bid price. In most cases there will be a need for further debt financing over and above the IDA sourced Senior Debt. This would be provided by the market as a form of lower ranked debt. The providers of the additional debt may suggest that IDA, as Senior Debt holder, has taken their place and that the subordinated debt they then provide would come at a higher price due to the existence of the IDA Senior Debt. In the first instance we indicate that there is currently no long-term debt financing of any substance for Australian infrastructure projects. As such it is a new source of funding. It is also currently the case that the provision of debt facilities at