Full recourse or corporate debt differs from non-recourse debt in that it is the sponsor that borrows the funds, rather than an insolvency-remote SPV. While funds borrowed may be for the purposes of conducting a project to build a specific infrastructure item, recourse is to the full balance sheet of the borrower. Consequently if the project fails, the borrower must still repay.
Borrowers are typically large corporates or parastatal entities. Evaluation of the debt opportunity presented by these entities is no different to that traditionally used to evaluate corporate or full recourse debt.
Similarly, corporates and parastatals frequently issue bonds. The spreads available on these bonds are readily available on Reuters, INet Bridge or similar.
Corporates with significant infrastructure assets may also issue bonds. However, the funds from such bonds may not in all instances be used to create infrastructure assets, but rather for general corporate purposes.
Infrastructure funders may issue bonds or seek to obtain loans, the proceeds of which are earmarked for infrastructure investments.