Research On Bond Financing Of TJ Railway Construction Investment Company

Bond financing, which can not only be used to obtain more sufficient funds, but also can be used for a long time, has great significance for railway companies. More importantly,bond financing will not cause changes in the control of the company. Nor does it involve the management system of the company. Experience of railway enterprises financing from abroad illustrates that bond financing is still one of the most effective and practical financing way with reducing financing and transportation costs. According to statistics, in the financing structure of railway enterprises abroad, bond financing tends to occupy more than80% of the long-term debt. However, bond financing of our country’s railway financing proportion has yet to reach 20%, despite China’s national conditions and less developed capital market. That largely because China’s railway companies prefer to use equity financing to raise funds. So, as one of the main financing ways of railway construction, bond financing in our country still has bigger development space.As the only organization engaged in railway investment, TJ Railway Investment Group shoulders the responsibilities of railway construction and raising fund. Solving financing problems can make the company healthy and sustainable, improve the Tianjin railway transportation planning, and meet the needs of the Tianjin rapid economic development of transportation.In this paper, starting from the perspective of local railway enterprises, the writer analyzes the basic status quo of TJ Railway Investment Group, the industry conditions and prospects. We deem that TJ Railway Investment Group has a bright future within this industry. Meanwhile, in face with huge financing need is the main reason why TJ Railway Investment Group issues bond. We illustrates the importance of raising funds for Tianjin-Yu Jiapu railway construction, the risks and corresponding safeguards to identify the raising amount. After financial analysis, we think that the sound financial condition, the government support as well as the rapid development of Tianjin economic environment is the guarantee of Tianjin Railway Investment Group to be able to repay debts on time. Finally, we analyzes the impact of bond financing on the company. Compare the railway industry enterprise financing structure, we put forward advice on widening bond issuance, selective advantage project financing bonds, rich varieties, and strengthen the monitoring in the whole process of the bond financing.We hope that through this article, we can offer the solutions of the financing bottleneck to provide a reference for bond financing joint venture railway companies, so as to speed up the modernization of railway construction, which is of great significance to promote railway development.