The issue of this special financing tool is intended to provide the company with equity capital.
By not having voting rights, the company also protects itself against unintended influences from unwanted shareholders.
It is different from a bond issued by these agencies since participation certificates are secured by lease revenues.
Municipal and government entities use this instrument to circumvent restrictions that might exist on the amount of debt in other forms they able to take on.
While providing short term funds, participation certificates can also be used to reduce risk.