Assume that you have uncovered the following facts about the types of projects STL takes:

The projects are primarily infrastructure projects, requiring large initial investments and long gestation periods.

Most of the new projects will be in emerging markets, and the cash flows are expected to be in the local currencies, when they do occur.

The magnitude of the cash flows will largely depend on how quickly the economies of the emerging markets grow in the long run.

How would you use this information in the design of debt?

a.

Short-term debt, in local currency, preferably straight debt due to high growth in emerging markets

b.

Long-term debt, in local currency, preferably convertible debt due to high growth in emerging markets

c.

Short-term debt, in US dollars, preferably convertible debt due to high growth in emerging markets

d.

Long-term debt, in US dollars, preferably straight debt due to high growth in emerging markets