Resilience projects need funding. Green banks could help them reach new investors, one researcher says

A hybrid institutional capital model could package small infrastructure resilience projects to make them attractive to institutional investors, a new research paper proposes.

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Institutional investors such as pension funds and insurance companies collectively manage trillions of dollars and are searching for long-term investments that provide cash flow, Steshenko said. 

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Steshenko’s latest research paper lays out a hybrid institutional capital model, or HICM, that could connect local, statewide or multistate municipalities seeking infrastructure funding, group their infrastructure projects into a financing package and work with institutional investors to fund those projects. 

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The bank gathers these projects into a diverse portfolio — for instance, water infrastructure, energy efficiency and flood protection projects — using the same underwriting and eligibility criteria methodology across the projects to ensure consistency, transparency and structured risk allocation.    

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