market’s debut issue. The share of corporate bonds outstanding that was issued to finance infrastructure exceeded 50 percent in 7 of 12 focus countries that had such bonds outstanding at the end of 2006, though the overall amounts were small. It is also worth noting that in Chile, one of the comparator countries for this study, issuers of bonds in infrastructure sectors such as public utilities, the transport sector, and construction of transport infrastructure have played a major part in the development of the corporate bond market over the past few decades.

Perhaps the most striking finding of this research is that a larger share of the total amount of corporate bonds outstanding went toward infrastructure as of end-2006 than was the case for other local sources of financing, for the 23 focus countries excluding South Africa (table 6.2). That is, for these 23 countries as a group, corporate bonds are more likely to be used for infrastructure purposes than are local bank loans, government bonds, or equity issues. More than half of the total amount of corporate bonds outstanding at the end of 2006 (albeit a small amount overall) was for infrastructure. Equity issues ranked next in this respect, with 12 percent of total equity issues outstanding for the 23 countries. Despite the predominance of banks in the financial systems of these countries, only 10 percent of outstanding bank loans were for infrastructure purposes.

# **Table 6.2 Overview of financial instruments for locally sourced infrastructure financing: Focus countries excluding South Africa**

Amount outstanding at end-2006 or most recent available (US$ millions)

||Bank loans<br>/a|Gov’t<br>bonds /b|Corporate<br>bonds|Equity<br>issues|
|---|---|---|---|---|
|AICD excl. South Africa: Total outstanding, all financing purposes|49,046.5|12,389.0|1,060.8|65,528.4|
|AICD excl. South Africa: Total outstanding financing infrastructure (% of total)|10|1|52|12|
|AICD excl. South Africa: Total outstanding financing infrastructure (US$ millions)|5,007.9|140.1|548.1|7,796.2|
|Of which:|||||
|Transport|236.0||360.6|2,349.4|
|Telecoms|33.1||124.3|4,131.0|
|Transport, communications and storage|3,076.5||||
|Electricity generation/power|1,430.9||58.9|1,302.9|
|Water and sanitation|Note a|||12.9|
|Other /c|231.4|140.1|4.4||

Sources: National/regional central banks and securities exchanges.

a. Fairly broad catch-all categories for economic sectors in use by central banks in several countries, such as “transport, communications, and storage” (seven countries) and “transport, communication, energy and water” (four countries), make it difficult to disaggregate lending by specific infrastructure sectors. The amount of bank loans outstanding to the telecoms sector (and the electricity and water sectors) is likely higher than indicated because of the use of such catch-all categories; similarly, bank loans to transport are likely lower than indicated.

b. The actual amount of government bonds financing infrastructure may be an underestimate as specific financing purpose for these bond issues is generally unavailable. Some of the financing raised via these issues may have been allocated toward infrastructure financing. c. “Other” consists of large catch-all categories, including “public works” (which cannot be disaggregated).

Telecommunications companies had the highest number of bond issues outstanding (five) among companies operating in infrastructure sectors in the focus countries (excluding South Africa). But as indicated in chapter 3, the transport sector was the predominant infrastructure sector in terms of the amount of total corporate bonds outstanding for these countries—with a few large issues from Namibia 66