The Application Research Of Private Debt Financing In Construction Project Of Profit-making Highway

At present, China’s highway management mode of financing including bank loans,issuance of stocks, Distribution firm bonds, BOT, TOT, ABS, PPP and foreign directinvestment. Despite the diverse ways, but the money is not in time to meet the huge funddemand for business highway construction, thus it is imminent to seek new financing way ofalleviating the financing predicament.The traditional way of financing has become more and more difficult to meet thedemands of a huge capital operational highway construction project. Private bonds is aninnovative bonds which is introduced by capital market varieties. Private bonds is to point tohave certain relationship with the issuer’s minority investors to raise debt， its financing inconvenience and cost saving issue other than financing mode. This advantage provides a newperspective to solve the problem of insufficient funds of operational highway constructionprojects.Based on the project distinction theory， theory of project financing， private bondtheory and a new optimal sequence financing theory， combined with the reality of ourcountry national condition，first of all，we analysis the present situation of the application ofprivate debt in this paper which is on the base of main characteristics， financing conditions，deal structure， pricing and operation process. A few more operational highway constructionprojects is instructions in the use of bank loans， issuing stocks， corporate bonds orcorporate bonds and other traditional financing methods can’t meet the demand of businessdevelopment of highway construction project，we come to the conclusion that private bonds isplaying an important role to alleviate the financing difficulties. Then， based on the actualsituation of the financing of profit-making highway construction project using private bondfinancing， we deeply analyzed the existing problems and causes. Finally， aiming at how tomore apply the private bonds effective in the problems which is existing in the operationalhighway construction project， the paper puts forward a series of measures and suggestions，mainly including:(1). Enhance the effective management of the funds that collected throughprivate placement bonds financing;(2). Perfect the circulation mechanism of private bondmarket of for-profit expressway;(3). Diversify the credit ways of private placement bonds offor-profit expressway construction;(4). Standarize the supervison system of private placementbonds market of for-profit expressway construction;(5). Actively guide investors and traininvestors team.