1.   Colin Amies, electronics industry adviser at Midland Bank, says that obtaining equity finance is often more important.

2.   However, companies generally show a preference for equity finance if it is possible.

3.   In no country does equity finance contribute substantially.

4.   Perhaps the most important issue here concerns the extent to which OFIs are involved in equity finance.

5.   A project may be financed by equity finance in a company specifically set up to undertake the project, or by new equity introduced into an existing company.

6.   In the case of equity finance, an investor provides a company with cash in exchange for shares in the company.

7.   The agreement will also deal with the fees and expenses payable to the institutional providers of equity finance and the professional advisers.

8.   In such risky situations, companies should rely on equity finance rather than debt finance.