This paper sets out to explore the potential of sub-sovereign bonds in financing infrastructure in developing countries. Taking into account the historical experience of the US, it develops a supply and demand side framework for analysis of the market for sub-sovereign bonded debt in developing countries and applies this framework to Mexico, India and South Africa. Finally, it draws lessons for countries seeking to promote markets for sub-sovereign bonds. Evidence suggests that the regulatory environment, a diversified financial sector and increased capacity for debt support and management matter most for the development of the sub-sovereign bond market. Introduction -- The case for sub-sovereign bonds -- Global perspective on the current market for sub-sovereign bonds -- Supply-side factors in sub-sovereign bond issuances in developing countries -- Demand-side factors in sub-sovereign bond issuances in developing countries -- Conclusion.