Sub-sovereign bonds for infrastructure investment

This policy brief deals with the potential of subsovereign
bonds in infrastructure finance. Sub-sovereign
bonds are issued by state, provincial or local
governments to finance essential capital projects.
Increased urbanization, fiscal decentralization and
volatile private funding have led to enormous municipal
infrastructure financing needs around the globe.
Moreover, the need for capital to finance projects
targeted at either mitigation of or adaptation to climate
change has further promoted the idea to tap the domestic
capital market for green infrastructure investments
through municipal debt issuances sold in local currency.