Design Of Asset Securitization Of A PPP Project For A Investment Group

In order to revitalize the high-quality assets of state-owned enterprises,to reduce the financing cost of enterprises and to increase the financing channels of enterprises,asset securitization,as a new financing method,has been gradually promoted in China's capital market,which strongly supports the effective promotion of China's supply-side reform and the steady development of the Chinese economy.Different from traditional financing methods,asset securitization is a direct financing way that omits the bondage of the intermediate links and enables to reduce the financing obstacles and cost,and the securitized products have a larger scale and longer period.These advantage is helpful to greatly reduce the pressure on the funds of state-owned enterprises,and thus help them grow up quickly and strongly to achieve the reform objective.Based on the introduction of the research background and motivation,the dissertation firstly summarizes the development process of asset securitization,introuces the basic theories of asset securitization and then analyzes the characteristics and practical application of asset securitization,especially the PPP project of state-owned enterprises.Secondly,the dissertation analyzes the asset securitization schemes of two state-owned(holding)enterprises and the necessity and feasibility of asset securitization made by Sichuan A Investment Group.Finally,for A-Investment Group,the dissertation designs an asset securitization scheme: A special-assets-supported securitization plan in which the PPP project,Binjiang avenue in guiyuan forest park of L city is used as the asset pool.By analyzing the details of asset securitization including the characteristics of cash flows,the selection of bankruptcy isolation method,credit rating and credit increasing measures of the Binjiang Avenue PPP project in Guiyuan Linjing District of L City,this dissertation designs a securitization scheme for the PPP project with a capital scale of RMB 200 million,a comprehensive financing cost of 7.5%,and a duration of 8 years.The designed trenches includes three priority grades labelled as 01 to 03 and one sub-grade,with a capital ratio of 4:3:2:1.In terms of the repayment of principle and interest,a fixed interest rate is determined and the interest rate is paid annually and the principle been amortized.The scheme can guide the reform practice of A Investment Group by relieving its financial pressure and revitalizing its high-quality assets.In addition,the discussion of transaction structure,income distribution,liquidation procedures and risk response of securitized PPP projects can provide insightful reference for the construction and promotion of other PPP projects in national wide.