Case Study On Asset Securitization Of Yinchuan NO.7 Sewage Treatment Plant's PPP Project

From the relevant departments of China in 2016,the incentive policy of asset securitization of PPP project was put forward,and the first batch of 4 single PPP project assets securitization products were issued and listed in 2017.In just one year,the asset securitization of PPP project has been pushed into the big stage and got attention all around the world,and it has become one of the hottest concepts in 2017.PPP model is a new way of cooperation between Chinese government departments and social capital,and asset securitization can broaden the financing channels of PPP mode,and can also help the timely withdrawal of social capital funds and improve the enthusiasm of social capital to participate in the PPP model.From the current policy guidance and practical experience,PPP project asset securitization still has great room for development.This paper focuses on the application of PPP project asset securitization in practice,and selects"Yinchuan seventh sewage treatment plant PPP project" as a study case to simulate the case of asset securitization.First,from the two parties of the policy feasibility and operational feasibility to analyze the asset securitization of the case project,combined with the current policy orientation and practical experience,it is believed that the asset securitization of the PPP project of the seventh sewage treatment plant of Yinchuan is feasible.Then,based on the operation process and transaction structure of the asset securitization of the PPP project,we choose the appropriate asset securitization model and basic assets,and focus on the analysis of the main participants,the credit rating methods,the credit rating standards,the issuance and pricing of the asset backed securities,and the financing after the plan of the PPP project.Finally,the expected risk of PPP project asset securitization is elaborated from three aspects of PPP project itself risk,external environment risk and PPP project asset securitization operation risk,and put forward corresponding risk avoidance measures and suggestions.I hope this article can contribute to the long and healthy development of PPP asset securitization.