Case Study Of Project Revenue Bond Issued By Zhuzhou Rail Transit Technology City

Project revenue bonds have been highly expected since its birth due to its advantages in resolving the debt risk of local governments and have been considered as the best substitute for the city investment bonds.In the three years since its launch,although project revenue bonds have achieved rapid development,they are still only supplementary to traditional corporate bonds in terms of scale.There are also few successful applications for reference in various industries.This dissertation takes the project revenue bond issued by Zhuzhou Rail Transit Technology City as an example,analyzing success factors of the case based on reviewing domestic and international literature on project revenue bonds and corporate capital structure as well as consulting a large number of policy documents.The study of this dissertation provides new ideas for the financing of industrial park construction,and at the same time enriches the research on the application of project revenue bonds in the industrial park field,which is worth being promoted.This dissertation begins with the characteristics of project revenue bonds and the comparison with city investment bonds and asset-backed securities.By reviewing the situation of China's project revenue bonds market,this dissertation believes that China's project revenue bonds market still faces issues such as the incompleteness of relevant policies and guidance,the difficulty of private enterprises in issuing bonds and the great risk of investment.This dissertation then introduces the basic conditions of the project and the project revenue bonds issued by Zhuzhou Rail Transit Technology City,demonstrating the choice of the project financing method,and analyzing the risk and specific problems of this project revenue bond.The focus of this dissertation is on the analysis of the specific design of this project revenue bond to deal with the risks and issues mentioned above as well as the discussion of the key to the success of this case from five aspects:project capital implementation,cash flow measurement,debt repayment protection measures,bank account management,and pricing.Based on the conclusion of the case study and starts with the characteristics of this case and the commonality of the project revenue bonds,this dissertation summarizes the risk prevention measures of the project revenue bonds.This dissertation also points out that when choosing project revenue bonds as financing method,the issuer should pay attention to local economic conditions,the situation of the industrial park itself,the support of local government as well as suitable projects.In addition,in order to further promote the development of the project revenue bonds market,policy makers should establish a smooth communication channel,formulate project revenue and cash flow forecasting standards,make stricter requirements for intermediary qualifications,strictly implement the difference compensation system,and support private enterprises to issue project revenue bonds.