The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
You are making the classic conservative argument against anything new.
"Nobody will use it because nobody is using it."
Moreover, you are once again agglomerating development finance with long term finance when - as I have said at least a dozen times by now - these are like Chalk and Cheese.
Unitisation of existing assets - the replacement of secured debt with a new form of quasi equity thereby - is IMHO a killer application capable of changing the face of global finance through:
(a) Resolving the Credit Crunch - through refinancing unrepayable property debt;
(b) Financing the transition to renewables through unitisation of energy.
Development financing will take more time to evolve from the conventional debt/equity model, since it will require a change in the enterprise model, and a new approach to equity investment.
What unitisation of existing assets would do for you as a project financier is to free up your development credit for assets you wish to finance. In other words, to recycle your capital.
There is a huge pool of funding out there looking for direct investment in energy. Assuming that there is a suitable framework of trust, which IMHO requires a decentralised clearing union, rather than a centralised clearing house, do you think that the Chinese and Japanese (for instance) would rather hold T Bills or Units redeemable in payment for gas supplied?
"The future is already here -- it's just not very evenly distributed"
by gmoke - Aug 7 16 comments
by Oui - Aug 9 6 comments
by Frank Schnittger - Aug 3 53 comments
by Frank Schnittger - Jul 27 81 comments
by IdiotSavant - Jul 20 18 comments
by Frank Schnittger - Jul 25 43 comments
by Oui - Jul 26 10 comments
by Bernard - Jul 22 34 comments
by Oui - Aug 12
by Oui - Aug 114 comments
by Oui - Aug 10
by Oui - Aug 96 comments
by gmoke - Aug 716 comments
by Oui - Aug 3
by Frank Schnittger - Aug 353 comments
by Oui - Jul 3111 comments
by Oui - Jul 311 comment
by Cat - Jul 292 comments
by Frank Schnittger - Jul 2781 comments
by Oui - Jul 2610 comments
by Frank Schnittger - Jul 2543 comments
by Oui - Jul 232 comments
by Bernard - Jul 2234 comments
by Oui - Jul 226 comments
by Frank Schnittger - Jul 2116 comments
by Oui - Jul 2017 comments
by IdiotSavant - Jul 2018 comments