The Application Of Project Revenue Bonds In The Case Study Of Cangxi Poverty Alleviation

Project revenue bonds refer to the bonds that are issued by the project implementation and associated with a particular project. The funds that are raised by such bonds are ued for a specific project investment and construction, and the principal and interest repayment funds completely or mainly from the operating income after the completion of the project. China’s bond market has achieved rapid development since 2015. Various types of bonds’market size have respectively reached the highest level. In August 2015, the National Development and Reform Commission promulgated the "Interim Measures for the Management of the project revenue bonds", making the beginning of the development of the project revenue bonds in China.Poverty is one of the most serious social problem that China faces at present. Xi Jinping, the general secretary of China, proposed that "Poverty alleviation is one of the most important work during the 13th Five-year. All people must be liberated from poverty in 2020." during the investigation of poverty in Guizhou. The work of poverty alleviation is imminent.Through issuing project revenue bonds to raise poverty alleviation funds, it can solve the local government poverty alleviation funds shortage problem. But because of the fact that the project revenue bonds require project future earnings to repay the principal and interest of the bonds, and poverty alleviation is usually a public welfare work and income items tend to make ends meet, which is less than the project inputs. Therefore, how to make the project proceeds to repay the principal interest of the bonds has become the main problem in the poverty alleviation work. In the case of the project revenue bond of relocating the poor in Cangxi. creatively linked to the changes of the land targets, and fiscal subsidy and special subsidy income are the sources of project income of relocating the poor project. These not only conform to the relevant policies and regulations, but also cover all the principal and interest of the bonds. The project revenue bond of relocating the poor in Cangxi is China’s first success in the issuing of poverty alleviation bond combined with the project revenue bond and is also the first combination of poverty alleviation and financial markets, and is of great significance.In this paper, taking the project revenue bond of relocating the poor in Cangxi as an example, the author describes the specific circumstances of the bond issuer, and the bond structure and bond elements of the project revenue bond of relocating the poor in Cangxi. In addition, from the policy compliance and the actual income cash flow forecasting two aspects, the author has a complete discussion and analysis which are mainly focus on the three parts of income in the project of relocating the poor in Cangxi:the changes of land targets, the fiscal subsidy, and the special subsidy income. It concludes that the revenue of the project in Cangxi can fully cover the principal and interest of the bonds and meets the requirements of the issuing of the project revenue bonds. Finally, according to the case of the project revenue bond of relocating the poor in Cangxi, the author sums up the issuance requirements and conditions of the poverty alleviation project revenue bonds. According to the current situation of China’s poverty-stricken areas, the author discusses the significance of the promotion of the project revenue bond of relocating the poor in Cangxi in China’s poverty alleviation work.