Cross-border utility investment: Translating investment risk into global advantage
- Coopers & Lybrand`s Financial Advisory Group, Boston, MA (United States)
Investment in the rapidly expanding utility sector in many emerging markets offers real growth prospects for utility companies. But one must execute a global strategy that addresses the many additional risk factors, political obstacles, management challenges, tax complications and long-term funding requirements to succeed in this demanding environment. There is skepticism in some quarters that investments in foreign assets will prove fruitful for utilities and their shareholders. US utilities must realiza higher returns on foreign investment in order to compensate shareholders adequately for the added political and currency risk associated with these investments. This article describes the environment leading to cross-border power investment, several key strategic considerations related to the international power sector, and how these considerations can be used to create strategic advantage.
- OSTI ID:
- 96043
- Journal Information:
- Electricity Journal, Vol. 8, Issue 5; Other Information: PBD: Jun 1995
- Country of Publication:
- United States
- Language:
- English
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