A Study On Project Financing Of Hr Group’s Xin Jiang Fine Chemicals And Related Engineer Project

In recent years, with the development of China’s chemical industry, the development of the HR Group continues to accelerate, the scale of the enterprise is bigger and bigger, HR Group has become one of the top ten most influential representatives in China petrochemical industry. HR Group fully practices the scientific concept of development, responses to the country’s western development strategy, implements a strategic shift to Xinjiang, Qinghai and other places and concentrates to increase investment in Xinjiang, Qinghai and other places, in order to grasp the business opportunities, seize the opportunity. After the in-depth inspection and analysis, HR Group decides to build the Xinjiang fine chemicals and related engineer project. This project can fully use the advantages of natural resources in Xinjiang, use the advanced technology to produce the chlor-alkali products which can meet market demand, in order to promote the development of the chlor-alkali chemical industry in China and upgrade the chlor-alkali chemical industry technology.This project also can respond positively to the western development strategy which the party central committee and the state council call. At the same time, this project is the major step to expand the scale of the industry, enhance the economic efficiency of enterprises and the ability to resist risks, achieve the sustainable development for HR Group. So the investment of this project has great significance. However, the investment scale of this project is large, requires a lot of capital investment, then solves the financing needs of the project to become an urgent affair. Therefore, in-depth study of this project financing will help improve the investment efficiency of the HR Group, and avoid the possible risks in project financing.This paper is based on the theories of project financing, combines with the specific circumstances of the Xinjiang fine chemicals and related engineer project, first to introduce an overview of the HR Group and this project, estimates the total investment of the project according to the construction of the project content. On that basis, puts forward the preliminary financing package of this project. Then paper analysises this project from the means of financing, capital structure, expected payback period, net present value and the internal rate of return, summarizes the shortcomings such as single project sponsor, imbalance of the financing capital structure, a lack of financing guarantees which this the preliminary financing package exists, and points out that there may be some risks of the project financing. Then, this paper system analysis the domestic and international success cases of project financing and summarizes the successful experience of the cases, provides a reference for the HR Group’s financing project situation. Finally, in order to better improve the financing problems of this project, drawing on the basis of the experience of domestic and foreign enterprises, the paper puts forward some suggestions, including the introduction of other promoters, to take the private placement and leasing to let financing options diversify, to strengthen the risk control of the project financing.