RE:RE:RE:Finally!!!Goldfather wrote: --Captain wrote- I guess the banks mustn't have liked the risk profile.--
- you also say it's a screaming deal for this type. ....... what do you mean
banks didn't like ??
I work in infrastructure development (ports, railways, etc). A fully de-risked project (already built and with revenue coming in) would sell for an annualized income of 3% or so. A non-de-risked project (not designed or built yet) could require an IRR up to about 25% or so for investors. The range in between is where the risk/reward calculation determines the return. I would have expected the notes at more than 10%; 6.95% is a great deal in my opinion.
Banks are risk-averse, and may have required that higher return.