In July 2006, the now bankrupt RiverCity Motorway issued a prospectus promising an initial yield of 6% per annum. They paid it for the first few years but the strange thing was the tunnel wasn’t even built at the time of the float. Not one cent of revenue was going to be generated until 2010 when the road was expected to be opened.
As we pointed out at the time, the yield was nothing but a Clayton’s yield. They raised extra money from investors upfront, just so they could give some of it back while the road was under construction.
Source: RiverCity Prospectus