The Application Of Asset Backed Securitization On The Highway Financing

With the high-speed development of national economy,highway industry has entered the golden age of large-scale development,but due to the highway industry has two industry characteristics,firstly high capital demand,secondly the long investment cycle,since that difficulties in financing have been restricted the industry development.With the further deepening of the capital market reform,Asset Backed Securitization(ABS)as an innovative financing way has brought a new idea for the financing of the highway construction enterprise.Financing through asset backed securitization can optimize the highway enterprise's financial structure,improve the level of highway enterprise financial management,make the highway expected cash flow cash in advance,guarantee the highway construction fund is enough,further broadening the channels for highway construction financing.Based on the relevant theoretical.review of asset securitization and the highway financing,the case study of the successfully issued highway toll collection asset securitization products-Guangzhou Communications investment group Co,Ltd's Guangzhou airport highway tolls usufruct asset-backed securitization product has been discussed.Based on the case study,methods of financing funds for the highway construction projects with this new asset securitization channel were proposed.Some obstacles and risks of the highway enterprises encountered in the use of asset securitization financing were discussed further.In addition,some solutions and policy suggestions were proposed.Finally,the advantages of application of ABS in highway industry were summarized and the capital chain of the project company would be improved,the financing channels for the enterprises would be innovated,the uncertainty of future cash flow and financing costs would be reduced,the debt structure would be improved with the ABS.