This policy brief outlines promising ideas to attract instiutional investors to pay for infrastructure they have not convinced pension funds or affluent individuals to invest, especially in emerging economies with untested issuers. The “tax-kicker” bond being proposed here, with more elaboration and trials, could prove that new sources of future tax revenue are feasible to attract private investors with back-end participation in a budget-neutral way since Tax-kicker bonds will be able to offer higher rates of return than traditional revenue-backed or project bonds.
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