Financing infrastructure using asset-backed securities : lessons for developing countries

The purpose of the paper is to investigate how Asset-Backed Securitization (ABS) can be used to fund infrastructure development in developing countries. This paper also presents a case study on how ABS has been used to fund infrastructure in Australia and points out the lessons that developing countries can learn from the Australian experience. Huge amounts of funds are being poured into infrastructural investment. However, much of this activity is occurring in developed countries with little activity in developing countries. Developing countries can participate in this windfall, if clear policies, well-functioning institutions, and well led out regulations are put in place. Structured debt or ABS is seen as an innovative way of funding infrastructure.