international markets. However, straightforward bonds would probably not be ideal because of the high degree of issuer creditworthiness required and the full commercial interest rates together with only medium maturity. Moreover, a failed issue would bring considerable adverse publicity to the project. Nonetheless, high risk, high return issues such as income-related bonds or convertible loan stock could have considerable appeal if well presented, but probably only once the project was well developed. Finance from Official Sources Debt from Official sources is generally at concessionary, often fixed, interest rates for medium or long terms; however, it is frequently slow to obtain and may only be available for certain countries or certain usages. The SPS project’s international character might be a stumbling block in obtaining official debt, but one cannot overemphasise the need to structure and locate the project entity in such a way as to maximise the availability of this debt. Export Credit Provided the capital goods are purchased from countries which run export credit or insurance schemes (in practice this includes all countries likely to provide the equipment), the SPS project would benefit from financing by the supplier country for 859^90% of the cost of the equipment purchased. These funds are at a fixed rate, of medium maturity, and at subsidised rates usually well below the commercial market rates. Export credit finance should constitute a major source of finance for this project in view of the high capital equipment content. Multilateral Aid Agencies (World Bank, IFC, EIB. etc.) The aid agencies are all potential lenders to the project. Their lending criteria are somewhat varied and it may not be possible to present the project in such a way that it is eligible for funds by all the major multilateral aid agencies. The interest cost of the agencies’ funds are comparatively less attractive than they were; however, the long maturity is still a major benefit. Moreover, quite apart from the direct financial support of these loans, the approval of the SPS project by, for instance, the World Bank, would substantially enhance its status, and might improve cofinancing possibilities. Bilateral Aid This type of finance, provided on highly concessional terms by most major industrialised countries, is granted on quasipolitical grounds. It is becoming gradually less available for funding major industrial projects; nonetheless the transnational nature of the SPS project could well make it eligible for this type of aid. It may be felt, however, that the SPS project should not have such strong links with particular governments. UNITED NATIONS REVOLVING FUND FOR NATURAL RESOURCES EXPLORATION Finally, appropriate funds such as this (UNRFNRE) should be approached since
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