Highway Company Middle-term Note Financing Feasibility Analysis

Since2010, the dual supervision effects of national credit crunch and governmentfinancing platform bring on a big difficulty in highway construction financing work, thetraditional single financing model can no longer guarantee the construction fund demand.Therefore, it’s an important subject highway construction faced that how to broaden thefinancing channels, solve fund shortage problem.Based on author’s work practice, the paper uses the related economic theories andmethods, employs the macro and micro analysis, qualitative and quantitative demonstrationanalysis, empirical and normative analysis methods, studies Heilongjiang Highway Group(HHG) middle-term note issuance subject qualification, project design, comprehensivefinancing cost and investment risk and a series of key factors, then researches the newmiddle-term note issuance way systematically making highway company as the main body.First of all, according to the definition and the middle-term note issuance process, thearticle makes a comparison between middle-term note and the other financing ways in bondmarket, and demonstrates the advantages of middle-term note financing way. Secondly, withthe contrast characteristics between American and Chinese middle-term note market, thispaper releases reference and revelation of American experience to develop China’smedium-term notes market; through researching our country’s middle-term note developmentand present situation, this paper expounds the boosting effect of middle-term note in Chinaeconomic development, and analyzes the main factors of impeding middle-term note marketdevelopment. Again, the paper analyzes deeply HHG middle-term note issuance cost,evaluates the risks borne by the investors. Finally, the paper puts forward the solutions ofmiddle-term note issuance existing problems.The article draws a conclusion that HHG as the main subject, it is feasible, in keepingwith the highway industry and social economic development and is of great practicalsignificant for optimizing debt structure and improving enterprise’s reputation and image toissue middle-term note issuance with the advantages of low financing comprehensive cost,less default risk, vulnerable-accepted by market investor.