Question

Refinancing Risk' is particularly high for infrastructure financing company because:

Q: Answer-Refinancing Risk' is particularly high for infrastructure financing company because:

Refinancing Risk is particularly high for infrastructure financing companies because they face a severe asset-liability mismatch, where they fund long-term, low-liquidity assets often 20 years with short-term, volatile liabilities. This risk is compounded by delayed project cash flows, high leverage, and reliance on bank funding in the absence of a robust long-term corporate debt market.