RECEIVABLES INVESTMENT TRUSTS AS AN ALTERNATIVE FOR THE PARTICIPATION OF INSTITUTIONAL INVESTORS IN INFRASTRUCTURE PROJECTS

The Bulgarian economy requires priority and scale infrastructure investment under conditions of limited state funds. Institutional investors manage significant resources that can be included in the financing of infrastructure projects, but respect the strict restrictions governing their activities. The infrastructure projects risks are serious and their assessment is more precise after the design phases and the initial construction stages. The aim of the survey is to draw on the existing legal framework opportunities for involving institutional investors in the process of financing infrastructure projects. Receivables investment trusts offer such alternatives for institutional investors to refinance the companies building the projects while providing investors with professional valuation of claims under performance contracts, interest and principal, institutional management of risks and cash flows.