International project finance: review and implications for international finance and international business

Müllner, Jakob

doi:10.1007/s11301-017-0125-3

Cited by 33 publications

(21 citation statements)

References 146 publications

(180 reference statements)

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“…Hainz and Kleimeier (2012) conducted a study across 64 countries and showed that nonrecourse project finance supported by syndication of development banks offers effective mitigation to sovereign risks. Müllner (2017) called for interdisciplinary research for project finance based on integration of finance, management, and international business.…”

Section: Literature Reviewmentioning

confidence: 99%

How does a bank's involvement interplay with a firm's capacity investment? An analysis and comparison of different consortium structures

Wang

Wen

Yip

et al. 2020

Int Trans Operational Res

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As nonrecourse project finance (rather than financing on a sovereign basis) is becoming more prevalent worldwide, financing institutions have to collaborate more closely with firms to optimize capacity-investment and financing decisions. Under this background, this paper presents a stylized Stackelberg games model, taking into account the firm's capacity investment as well as the bank's interest rate and funding ratio decisions. Consortium structures between bank and firm are formalized into five modes based on industry practice, namely, the integrated consortium, pure shareholder funding, bank as leader, full coordination, and bank as follower. The optimality and equilibrium of each of the five modes are analytically derived, and their existence and uniqueness are demonstrated. Valuable economic insights are obtained through both modeling analysis and numerical experiments, with the main findings including the following: (i) a lack of bank financing leads to insufficient capacity investment and poor consortium performance; (ii) interest rate and funding ratio play important but different roles in the bank's risk management; (iii) the bank's proactivity in leading and coordinating the consortium is critical for the two parties' overall performance; and (iv) if the bank is the follower, the firm's capacity decision is irrelevant to the bank's loan contract, and the consortium cannot be coordinated to the first-best level of performance.

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Section: Literature Reviewmentioning

confidence: 99%

How does a bank's involvement interplay with a firm's capacity investment? An analysis and comparison of different consortium structures

Wang

Wen

Yip

et al. 2020

Int Trans Operational Res

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“…Another issue that stands out in the results of the studies examining the financing decisions of the projects to a large extent is market risk. In its shortest definition, market risk is the possibility of loss of firms due to price movements in the market [44]. For example, if the foreign exchange rate is overvalued, firms with high foreign exchange debt may suffer too much loss.…”

Section: Literature Review On the Financing Of Large-scaled Projectsmentioning

confidence: 99%

“…The details of them are given on Table 1. Müllner [44] In this framework, dimensions and criteria are selected based on BSC approach. This approach was used by many different researchers in the literature with various purposes.…”

Section: Identifying the Dimensions And Criteriamentioning

confidence: 99%

Balanced Scorecard-Based Evaluation of Sustainable Energy Investment Projects with IT2 Fuzzy Hybrid Decision Making Approach

Zhou

Yüksel

et al. 2019

Energies

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The purpose of this study is to determine the issues that financial institutions should pay attention to in their decision to provide financing to large scale energy projects. Within this framework, taking into account the Balanced Scorecard (BSC) approach, 4 dimensions and 8 criteria that can be effective in these decisions of financial institutions were determined. After that, the importance weights of these dimensions and criteria were determined by interval type-2 (IT2) fuzzy DEMATEL method. In addition, 3 different types of banks (public, private, foreign) are listed for their performance in financing energy projects. According to the results of the analysis, the technological and financial adequacy of the company that will invest in energy is the issue that financial institutions should pay the most attention to in their credit decision. Therefore, it is important for financial institutions to visit the customer's location and pay attention to the technological adequacy in the process of evaluating the customer's demand for credit for a large-scale energy project. In addition, it would be appropriate not to provide this fund to the energy companies with high indebtedness and insufficient liquidity. Another result of the study is that state banks have the lowest performance in financing these large-scale energy projects. When this result is taken into consideration, state banks need to pay more attention in evaluating large-scale energy projects in order to avoid major losses.

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“…Project financing takes place internationally [3]. It is a global phenomenon, complex and multifaceted [4]. Investors aim for profit.…”

Section: Basics: Infrastructure Project Financementioning

confidence: 99%

“…-The European Union will combine a principled approach to connectivity and the recognition -quite in the sense of our approach of intercultural project finance -that Asia encompasses different regions, which are home to very diverse countries in terms of economic models and level of development. It is a matter of concrete actions, based on three strands: 4 1. Creating transport links, energy and digital networks, and human connections: Efficient infrastructure and connections create growth and jobs and enable people and goods to move.…”

Section: Three Core Approaches For Implementationmentioning

confidence: 99%

Perspectives of Infrastructure Project Finance: Intercultural Investment, Connectivity and Trust

Luttermann

2019

jour

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Project finance of infrastructure (e. g. exploitation and transportation of natural resources, high speed railways, internet) forms a basis for the peaceful development and the prosperity of nations as well as the transnational community. What is needed are dependable networks in a world in transition, where digitalisation and new powers demand joint action. Particularly in the Eurasian region, from Lisbon to Vladivostok, fields with future prospects are opening up for Russia, Germany and the European union. We can develop them through investment and cooperation, by building up trust through common rules and sustainable substance. Here, a concept for this is presented for "Intercultural Project Finance": An order of law and business (order of assets; German: Vermoegensordnung), in which state and private actors build up the necessary trust and are able to co-operate and profit transnationally for the good of the common prosperity of all peoples. A key element of a suitable system for the investment of capital (transnational investor protection law) is a sustainable valuation law; this has to be developed and etablished by legal comparison. In the following, relevant aspects for theory and practice which are basic for the actors of infrastructure project finance will be shown, as well as the new initiative of the European union regarding "Connectivity". ОРИГИНАЛЬНАЯ СТАТЬЯПерспективы финансирования проектов инфраструктуры: инвестиции, взаимодействие и доверие в межкультурном контексте К. Х. Люттерманн Католический университет им. Айхштетт-Ингольштадт, Ингольштадт, Германия https://orcid.org/0000-0002-2901-4591 АННОТАЦИЯ Финансирование проектов инфраструктуры (например, эксплуатация и транспортировка природных ресурсов, высокоскоростные железные дороги, Интернет) формирует основу для мирного развития и процветания народов разных стран, а также транснационального сообщества. В условиях меняющегося мира, где цифровизация и новые власти требуют совместных действий, необходимы надежные межкультурные связи. В частности, в Евразийском регионе, от Лиссабона до Владивостока, открываются перспективы для России, Германии и Европейского союза. Эти связи можно развивать через инвестиции и сотрудничество, укрепляя доверие с помощью общих правил и стабильного состояния. В статье представлена концепция «Межкультурного финансирования проектов»: регламент бизнеса и права (порядок активов; нем.: Vermoegensordnung), в котором государственные и частные субъекты формируют необходимое доверие и способны сотрудничать и получать прибыль на транснациональном уровне на благо общего процветания всех народов. Ключевым элементом системы, подходящей для инвестирования капитала (закон о защите транснациональных инвесторов), является закон об устойчивой оценке; он должен быть разработан и установлен путем правового сравнения. Показаны соответствующие аспекты теории и практики, которые являются основными для участников финансирования проектов инфраструктуры, а также новая инициатива Европейского союза в отношении межкультурного взаимодействия. Клю...

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International project finance: review and implications for international finance and international business

Cited by 33 publications

References 146 publications

How does a bank's involvement interplay with a firm's capacity investment? An analysis and comparison of different consortium structures

How does a bank's involvement interplay with a firm's capacity investment? An analysis and comparison of different consortium structures

Balanced Scorecard-Based Evaluation of Sustainable Energy Investment Projects with IT2 Fuzzy Hybrid Decision Making Approach

Perspectives of Infrastructure Project Finance: Intercultural Investment, Connectivity and Trust

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