The Experts below are selected from a list of 414 Experts worldwide ranked by ideXlab platform

T S Ramakrishnan - One of the best experts on this subject based on the ideXlab platform.

  • Financing Infrastructure Projects Through Public–Private Partnerships in India
    Transportation Research Record, 2014
    Co-Authors: T S Ramakrishnan
    Abstract:

    India has been suffering from a huge deficit in infrastructure facilities. The Indian government perceives the public-private partnership (PPP) model as the preferred mode to bridge this deficit and has initiated several measures in that regard. This paper discusses the basic aspects of PPP and how it works in India. Financing for infrastructure is one of the major issues. This paper explains various issues such as over-dependence on commercial banks for debts; inadequate Financing from infrastructure finance companies; issues in external commercial borrowing; nonavailability of Mezzanine Financing; partial availability of insurance, pension, and provident funds; and nonFinancing issues that are plaguing infrastructure finance in India. The recent improvements such as infrastructure debt bonds, relaxed norms for external commercial borrowing, and reasonable exit options are also examined. The paper suggests various financial reforms that are needed for PPP Financing in India such as tapping into savings, ...

  • Financing Infrastructure Projects Through Public-Private Partnerships in India
    Transportation Research Record, 2014
    Co-Authors: T S Ramakrishnan
    Abstract:

    India has been suffering from a huge deficit in infrastructure facilities. The Indian government perceives the public-private partnership (PPP) model as the preferred mode to bridge this deficit and has initiated several measures in that regard. This paper discusses the basic aspects of PPP and how it works in India. Financing for infrastructure is one of the major issues. This paper explains various issues such as over-dependence on commercial banks for debts; inadequate Financing from infrastructure finance companies; issues in external commercial borrowing; nonavailability of Mezzanine Financing; partial availability of insurance, pension, and provident funds; and nonFinancing issues that are plaguing infrastructure finance in India. The recent improvements such as infrastructure debt bonds, relaxed norms for external commercial borrowing, and reasonable exit options are also examined. The paper suggests various financial reforms that are needed for PPP Financing in India such as tapping into savings, ...

Jin-woo Choi - One of the best experts on this subject based on the ideXlab platform.

  • balancing project Financing and Mezzanine project Financing with option value to mitigate sponsor s risks for overseas investment projects
    Sustainability, 2018
    Co-Authors: Jae-il Yoo, Eul-bum Lee, Jin-woo Choi
    Abstract:

    Major steel-making companies in Korea have recently been trying to advance into international markets for better profitability and new market shares. Even with strategic partnerships with local organizations, the Korean steel companies are facing and incurring significant risks which impact their ability to achieve a sustainable profit. The objective of this research is to determine an optimum combination of financial models, specifically Project (PF) and Mezzanine Financing (MF) with an option (convertible bond and bond with warrant). The results of the proposed model can lower interest rates of Financing, thereby increasing the profitability of the project investors. To analyze the MF method’s effectiveness and proper use, the following three steps are applied: (1) Monte-Carlo Simulations (MCS) using Excel and @Risk software are performed for the Net Present Value (NPV) of the project and its volatility; (2) the Black-Scholes model (BSM) is applied to evaluate MF based on project value; and (3) interest rate of MF is calculated from its option value and is reapplied back to the NPV calculation of the project to determine the effects of MF. Assuming a 50% debt/equity ratio, these simulations were performed on five cases (50% senior debt, 0% MF for a base case then increasing MF and decreasing senior debt by 10% four times). Through this process, using the 10%, MF lowered the borrowing size by 20% and using MF continued to lower the borrowing size up to 40% borrowing when using 40% MF. Based on this result, the researchers support the use of MF to optimize Korean steel international financial models. The resultant data will serve as an effective method to increase net cash flow in overseas steel-plant project investments. This research was performed for a steel plant located in Iran as a case-study, but this optimized Financing method using MF with an option product can be applied sustainably not only for overseas investment of steel plants but also any other business, such as oil & gas, power generation, and transportation industries.

  • Balancing Project Financing and Mezzanine Project Financing with Option Value to Mitigate Sponsor’s Risks for Overseas Investment Projects
    MDPI AG, 2018
    Co-Authors: Jae-il Yoo, Eul-bum Lee, Jin-woo Choi
    Abstract:

    Major steel-making companies in Korea have recently been trying to advance into international markets for better profitability and new market shares. Even with strategic partnerships with local organizations, the Korean steel companies are facing and incurring significant risks which impact their ability to achieve a sustainable profit. The objective of this research is to determine an optimum combination of financial models, specifically Project (PF) and Mezzanine Financing (MF) with an option (convertible bond and bond with warrant). The results of the proposed model can lower interest rates of Financing, thereby increasing the profitability of the project investors. To analyze the MF method’s effectiveness and proper use, the following three steps are applied: (1) Monte-Carlo Simulations (MCS) using Excel and @Risk software are performed for the Net Present Value (NPV) of the project and its volatility; (2) the Black-Scholes model (BSM) is applied to evaluate MF based on project value; and (3) interest rate of MF is calculated from its option value and is reapplied back to the NPV calculation of the project to determine the effects of MF. Assuming a 50% debt/equity ratio, these simulations were performed on five cases (50% senior debt, 0% MF for a base case then increasing MF and decreasing senior debt by 10% four times). Through this process, using the 10%, MF lowered the borrowing size by 20% and using MF continued to lower the borrowing size up to 40% borrowing when using 40% MF. Based on this result, the researchers support the use of MF to optimize Korean steel international financial models. The resultant data will serve as an effective method to increase net cash flow in overseas steel-plant project investments. This research was performed for a steel plant located in Iran as a case-study, but this optimized Financing method using MF with an option product can be applied sustainably not only for overseas investment of steel plants but also any other business, such as oil & gas, power generation, and transportation industries

Jae-il Yoo - One of the best experts on this subject based on the ideXlab platform.

  • balancing project Financing and Mezzanine project Financing with option value to mitigate sponsor s risks for overseas investment projects
    Sustainability, 2018
    Co-Authors: Jae-il Yoo, Eul-bum Lee, Jin-woo Choi
    Abstract:

    Major steel-making companies in Korea have recently been trying to advance into international markets for better profitability and new market shares. Even with strategic partnerships with local organizations, the Korean steel companies are facing and incurring significant risks which impact their ability to achieve a sustainable profit. The objective of this research is to determine an optimum combination of financial models, specifically Project (PF) and Mezzanine Financing (MF) with an option (convertible bond and bond with warrant). The results of the proposed model can lower interest rates of Financing, thereby increasing the profitability of the project investors. To analyze the MF method’s effectiveness and proper use, the following three steps are applied: (1) Monte-Carlo Simulations (MCS) using Excel and @Risk software are performed for the Net Present Value (NPV) of the project and its volatility; (2) the Black-Scholes model (BSM) is applied to evaluate MF based on project value; and (3) interest rate of MF is calculated from its option value and is reapplied back to the NPV calculation of the project to determine the effects of MF. Assuming a 50% debt/equity ratio, these simulations were performed on five cases (50% senior debt, 0% MF for a base case then increasing MF and decreasing senior debt by 10% four times). Through this process, using the 10%, MF lowered the borrowing size by 20% and using MF continued to lower the borrowing size up to 40% borrowing when using 40% MF. Based on this result, the researchers support the use of MF to optimize Korean steel international financial models. The resultant data will serve as an effective method to increase net cash flow in overseas steel-plant project investments. This research was performed for a steel plant located in Iran as a case-study, but this optimized Financing method using MF with an option product can be applied sustainably not only for overseas investment of steel plants but also any other business, such as oil & gas, power generation, and transportation industries.

  • Balancing Project Financing and Mezzanine Project Financing with Option Value to Mitigate Sponsor’s Risks for Overseas Investment Projects
    MDPI AG, 2018
    Co-Authors: Jae-il Yoo, Eul-bum Lee, Jin-woo Choi
    Abstract:

    Major steel-making companies in Korea have recently been trying to advance into international markets for better profitability and new market shares. Even with strategic partnerships with local organizations, the Korean steel companies are facing and incurring significant risks which impact their ability to achieve a sustainable profit. The objective of this research is to determine an optimum combination of financial models, specifically Project (PF) and Mezzanine Financing (MF) with an option (convertible bond and bond with warrant). The results of the proposed model can lower interest rates of Financing, thereby increasing the profitability of the project investors. To analyze the MF method’s effectiveness and proper use, the following three steps are applied: (1) Monte-Carlo Simulations (MCS) using Excel and @Risk software are performed for the Net Present Value (NPV) of the project and its volatility; (2) the Black-Scholes model (BSM) is applied to evaluate MF based on project value; and (3) interest rate of MF is calculated from its option value and is reapplied back to the NPV calculation of the project to determine the effects of MF. Assuming a 50% debt/equity ratio, these simulations were performed on five cases (50% senior debt, 0% MF for a base case then increasing MF and decreasing senior debt by 10% four times). Through this process, using the 10%, MF lowered the borrowing size by 20% and using MF continued to lower the borrowing size up to 40% borrowing when using 40% MF. Based on this result, the researchers support the use of MF to optimize Korean steel international financial models. The resultant data will serve as an effective method to increase net cash flow in overseas steel-plant project investments. This research was performed for a steel plant located in Iran as a case-study, but this optimized Financing method using MF with an option product can be applied sustainably not only for overseas investment of steel plants but also any other business, such as oil & gas, power generation, and transportation industries

Eul-bum Lee - One of the best experts on this subject based on the ideXlab platform.

  • balancing project Financing and Mezzanine project Financing with option value to mitigate sponsor s risks for overseas investment projects
    Sustainability, 2018
    Co-Authors: Jae-il Yoo, Eul-bum Lee, Jin-woo Choi
    Abstract:

    Major steel-making companies in Korea have recently been trying to advance into international markets for better profitability and new market shares. Even with strategic partnerships with local organizations, the Korean steel companies are facing and incurring significant risks which impact their ability to achieve a sustainable profit. The objective of this research is to determine an optimum combination of financial models, specifically Project (PF) and Mezzanine Financing (MF) with an option (convertible bond and bond with warrant). The results of the proposed model can lower interest rates of Financing, thereby increasing the profitability of the project investors. To analyze the MF method’s effectiveness and proper use, the following three steps are applied: (1) Monte-Carlo Simulations (MCS) using Excel and @Risk software are performed for the Net Present Value (NPV) of the project and its volatility; (2) the Black-Scholes model (BSM) is applied to evaluate MF based on project value; and (3) interest rate of MF is calculated from its option value and is reapplied back to the NPV calculation of the project to determine the effects of MF. Assuming a 50% debt/equity ratio, these simulations were performed on five cases (50% senior debt, 0% MF for a base case then increasing MF and decreasing senior debt by 10% four times). Through this process, using the 10%, MF lowered the borrowing size by 20% and using MF continued to lower the borrowing size up to 40% borrowing when using 40% MF. Based on this result, the researchers support the use of MF to optimize Korean steel international financial models. The resultant data will serve as an effective method to increase net cash flow in overseas steel-plant project investments. This research was performed for a steel plant located in Iran as a case-study, but this optimized Financing method using MF with an option product can be applied sustainably not only for overseas investment of steel plants but also any other business, such as oil & gas, power generation, and transportation industries.

  • Balancing Project Financing and Mezzanine Project Financing with Option Value to Mitigate Sponsor’s Risks for Overseas Investment Projects
    MDPI AG, 2018
    Co-Authors: Jae-il Yoo, Eul-bum Lee, Jin-woo Choi
    Abstract:

    Major steel-making companies in Korea have recently been trying to advance into international markets for better profitability and new market shares. Even with strategic partnerships with local organizations, the Korean steel companies are facing and incurring significant risks which impact their ability to achieve a sustainable profit. The objective of this research is to determine an optimum combination of financial models, specifically Project (PF) and Mezzanine Financing (MF) with an option (convertible bond and bond with warrant). The results of the proposed model can lower interest rates of Financing, thereby increasing the profitability of the project investors. To analyze the MF method’s effectiveness and proper use, the following three steps are applied: (1) Monte-Carlo Simulations (MCS) using Excel and @Risk software are performed for the Net Present Value (NPV) of the project and its volatility; (2) the Black-Scholes model (BSM) is applied to evaluate MF based on project value; and (3) interest rate of MF is calculated from its option value and is reapplied back to the NPV calculation of the project to determine the effects of MF. Assuming a 50% debt/equity ratio, these simulations were performed on five cases (50% senior debt, 0% MF for a base case then increasing MF and decreasing senior debt by 10% four times). Through this process, using the 10%, MF lowered the borrowing size by 20% and using MF continued to lower the borrowing size up to 40% borrowing when using 40% MF. Based on this result, the researchers support the use of MF to optimize Korean steel international financial models. The resultant data will serve as an effective method to increase net cash flow in overseas steel-plant project investments. This research was performed for a steel plant located in Iran as a case-study, but this optimized Financing method using MF with an option product can be applied sustainably not only for overseas investment of steel plants but also any other business, such as oil & gas, power generation, and transportation industries

Jan Svedik - One of the best experts on this subject based on the ideXlab platform.

  • Mezzanine Financing instruments in comparison to the classic Financing sources
    Business Management and Education, 2018
    Co-Authors: Libena Tetrevova, Jan Svedik
    Abstract:

    The paper deals with innovated Financing in the form of Mezzanine Financing instruments (sources). The authors aimed to identify, characterize, and assess Mezzanine Financing instruments in comparison to the classic corporate Financing sources. Mezzanine Financing represents an innovated form of Financing interconnecting the features of equity and debt. The paper specifies the sources and characterizes and assesses pros and cons of each of them. Subsequently, it presents an overall evaluation of Mezzanine Financing instruments in comparison to the selected equity and debt Financing sources. This evaluation was performed on the basis of 14 set criteria using a binary scale.

  • Assessment of Financial Benefits of Selected Mezzanine Financing Instruments
    9th International Scientific Conference “Business and Management 2016”, 2016
    Co-Authors: Libena Tetrevova, Jan Svedik
    Abstract:

    Clanek je věnovan problematice hodnoceni financni výhodnosti podřizených uvěrů a konvertibilnich dluhopisů. Cilem autorů clanku je navrhnout a ověřit metodiku hodnoceni financni výhodnosti podřizených uvěrů a konvertibilnich dluhopisů.

  • Use of Public Debt Mezzanine Instruments in the Czech Republic
    Procedia - Social and Behavioral Sciences, 2015
    Co-Authors: Jan Svedik, Libena Tetrevova
    Abstract:

    Abstract This paper deals with use of public debt Mezzanine instruments, which include participating bonds, subordinated bonds, convertible bonds and bonds with warrants, by non-financial corporations and financial corporations in the Czech Republic. It aims to analyse and evaluate use of Mezzanine Financing instruments in the form of public debt Mezzanine by selected economic entities in the Czech Republic in 2006 – 2012, and identify factors affecting the scope of their utilization. The performed research implies that public debt Mezzanine instruments are used in the Czech Republic marginally only. Within the monitored period, these instruments were issued in the total volume of CZK13.43bn (i.e. about EUR0.49bn), where subordinated bonds got a share of CZK13.26bn (i.e. about EUR0.48bn). The share of newly issued public debt Mezzanine instruments in the total financial sources of non-financial corporations and financial corporations within the monitored period was on the top in 2009, when it amounted to 0.08%. Wider utilization of public debt Mezzanine instruments is particularly prevented by the fact that potential issuers are afraid of high costs relating to the process of issuance, but also to the life cycle of such an issue, and they are also afraid of lack of interest of investors (in the case of subordinated bonds and participating bonds), the owners’ fear of extension of control (in the case of convertible bonds and bonds with warrants), or the fact that it is difficult to estimate the cost of capital (in the case of participating bonds).