Research On Asset-backed Securitization Program Of Jilin Provincial Expressway Group Co., Ltd

This thesis probes into the application of domestic asset-backed securitizationin the field of superhighway. Through the simulation design of Jilin ProvinceExpressway Group Go., Ltd.(hereinafter referred to as the JiGao group) of theasset-backed securitization financing scheme, to demonstrate whether theasset-backed securitization, which is an innovative structured financial productcreated to raise funds, also works in the National infrastructure, for example theexpressway infrastructure projects. The final result is yes.The research started from the problem of capital shortage in JiGao group.According to the investigation, three reasons contribute to this problem. First, underthe guidance of national planning, a lot of money is need to build some newexpressways in Jilin Province. Second, expressway construction belongs to largeinfrastructure projects, so the period of payback is long. Endogenous financing inJiGao group is weak, and the government finance on the highway construction isinsufficient. Third, owning to the policies, the traditional way of external financingsuch as loans, debt issuance and listing are no longer feasible. Obviously, there isonly one way to solve the problem, which is to seek new financing channels. Basedon the investigation of domestic and abroad capital markets, we can find that, afterseveral years’ development, asset-backed securitization which is originated in70s inAmerica, has become a brilliant start. Many other countries have been trying toimitate, and now asset-backed securitization has become the most energetic and alsoa mature product in the financial market in Europe and Japan. In1990s, China putthe asset-backed securitization into practice. After six years’ test, including two phases, China has been gradually formed its own characteristics. As issued theCommission documents "securities company asset-backed securitization businessmanagement regulations"(hereinafter referred to as the "Regulations"), it markedthat the domestic enterprise asset-backed securitization changed from the pilotperiod into the standard period. Whether the financial product can be used to raisefunds for highway construction or not? How to make the financial plan? Whatsecurity measures to guarantee? If all these problems are solved, so is the shortageproblem in JiGao group.Based on the three issues above about asset-backed securitization, furtherresearches have been made and concluded that the right of expressway toll canprovide stable and reliable finance, which is consistent with the asset-backedsecuritization cash flow analysis. Put the income of expressway toll into the pool ofassets, which conforms to the recreate principle of asset-backed securitization. Theconstruction of expressway is dividable, which agrees with the danger dividableprinciple in asset-backed securitization. Expressway can use the real estate ascollateral to find the third party guarantee, which is the application of higher levelsecurity in asset-backed securitization. Based on the analysis before, it can beconcluded that it is accessible for JiGao group to apply the asset-backedsecuritization. After analyzing the characteristics and advantages of asset-backedsecuritization, it can be found that the asset-backed securitization is the mostappropriate financial mode for JiGao group, whose unique situation and problems.Thus, asset-backed securitization financing is also necessary. According to the"Regulations" and other related documents, as well as the previous successful cases,this paper makes out the plan of Expressway asset-backed securitization financialscheme in JiGao group in detail, which includes four parts: the asset pool,transaction structure design, credit enhancement, cash flow accumulationdistribution arrangement. The last part of the paper proposes some practical measurements, including legal regulations, risk prevention, and rules andregulations.