Chapter 2. Debt Structures: What Factors Drive Structuring Decisions?

Chapter 2. Debt Structures: What Factors Drive Structuring Decisions?

Once a public agency has identified a project or financing need, undertaken a rigorous assessment of its options to fund that need through available resources, and determined that debt financing is the best alternative, the public agency must decide how to structure the proposed debt obligation to best achieve project or financing goals, taking into consideration cost and other critical policy matters. This chapter provides a framework for exploring the different structural choices available to public agencies choosing debt financing, including how the debt will be repaid and secured and how it will attract investors and address market conditions.