Procedia Engineering · 2016 · 48 citations · 0 references
ArchitectureConstruction ManagementFinanceConstruction FinanceFundraisingProject FinanceConstruction FinancingConstruction LendingFinancing StrategiesInfrastructure FinancingProject FinancingPublic-private Partnership FinanceConstruction Loan FinancingPartnership FinancingProject Finance LendingPublic-private Partnership Investment
In a globalized financial environment, firms face the challenge of selecting optimal financing instruments for innovation and investment construction projects, despite banks and securities markets offering options such as investment lending, project financing, and securities issuance. The study aims to justify the use of these instruments in construction by analyzing fundraising approaches and methods. The authors examined fundraising strategies and proposed a classification map of project‑financing instruments based on construction segment, timing, membership, and public‑private partnership feasibility. The research presents dynamics of financing amounts and rates, benchmarks instruments revealing their advantages and disadvantages, and offers recommendations for selecting the optimal financing instrument for construction projects.
Under the conditions of financial area globalization, organizations face an acute problem – how to find the best instrument for the financing of innovation and investment construction projects. The banking sector and the securities market have accumulated sufficient financial assets that can be used to finance this kind of projects in the sphere of construction with the help of such instruments as investment lending, project financing, securities issue. To justify the need to use the above-mentioned instruments in the construction industry, the authors have analyzed the approach and methods of fundraising of construction projects. The authors have presented the dynamics of the amount and rate of the financing of construction projects. Depending on the segment of construction, the authors have suggested a classification map of project financing instruments, depending on their timing, membership and possibility of implementation in the form of a public and private partnership. The benchmarking of instruments for the financing of innovation and investment projects has revealed their advantages and disadvantages, recommendations have been drawn up for choosing the optimal instrument for the financing of construction projects.