Use of Bond Issues To Capture Financial Surplus Generated For The Private Sector By Public Investments In Transport Projects: Brazilian Legislation

Abstract

It is widely known that the capitals market is a major source of permanent financial resources for the economy because of the connection it establishes between agents with savings capacity (investors) and those in need of long term financial resources (finance borrowers). That being so, this paper presents a study on the possibility of capturing the financial surplus generated for the Private sector by public investments in transport projects using financing instruments, specifically, bonds. Such a study is needed to provide supporting information for new investments in transport projects given the scarcity of financial resources in a considerable number of Latin American countries. The analysis undertaken considers the Brazilian Capitals Market as a case study and accordingly the concepts used in it are presented in the perspective of Brazilian legislation.